2023 Annual Report
Guangdong Provincial Expressway Development Co. Ltd.2023 Annual Report
March 2024
12023 Annual Report
I. Important Notice Table of Contents and Definitions
The Board of Directors and the directors Supervisory Committee and supervisors and Senior Executives of the
Company hereby warrant that at the year there are no misstatement misleading representation or important
omissions in this report and shall assume joint and several liability for the authenticity accuracy and
completeness of the contents hereof.Mr.Miao Deshan The Company leader Mr. Wang Chunhua General Manager Mr. Lu Ming Chief
financial officer and the Ms.Yan Xiaohong the person in charge of the accounting department (the person in
charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in
this annual report.All the directors attended the board meeting for reviewing the Annual Report.The toll revenues of Expressway is main source of the major business income of the company The charge
standard of vehicle toll must be submitted to the same level people's government for review and approval after the
transport regulatory department of province autonomous region or municipality directly under the central
government in conjunction with the price regulatory department at the same level consented upon examination.Therefore the adjustment trend of the charge price and the charge price if has the corresponding adjustment in the
future price level when the cost of the company rises still depend on the approval of relevant national policies and
government departments and the company isn't able to make timely adjustment to the charge standard in
accordance with the its own operation cost or the change of market supply demand. So the change of charge
policy and the adjustment of charge standard also have influence on the expressways operated by the company to
some extent. So the charging policy changes and charges adjustment will affect the highways operation of the
company.The profit distribution proposal reviewed and approved by the boarding meeting was summarized as follows:
2090806126 for the base the Company would distribute cash dividend to all the shareholders at the rate of
CNY 5.47 for every 10 shares (with tax inclusive) 0 bonus shares（ including tax）and no reserve would be
converted into share capital.
22023 Annual Report
Table of Contents
I.Important Notice Table of contents and Definitions
II. Company Profile & Financial Highlights.III. Management Discussion & Analysis
IV. Corporate Governance
V. Environmental & Social Responsibility
VI. Important Events
VII. Change of share capital and shareholding of Principal Shareholders
VIII. Situation of the Preferred Shares
IX. Corporate Bond
X. Financial Report
32023 Annual Report
Documents available for inspection
1. Accounting statements carried with personal signatures and seals of legal representative General Manager
Chief Financial officer（Chief accountant）the person in charge of the accounting department (the person in
charge of the accounting )Financial Principal .
2. Original of Auditors’ Report carried with the seal of Certified Public Accountants as well as personal signatures
of certified Public accountants.
3. The texts of all the Company's documents publicly disclosed on the newspapers and periodicals designated by
China Securities Regulatory Commission in the report period.
42023 Annual Report
Definition
Terms to be defined Refers to Definition
Reporting period This
Refers to January 1 2023 to December 31 2023
year
The annual report of the company was approved by the board of directors on 2023
Reporting date Refers to
that is 15 20 2024
YOY Refers to Compared with 2022
The Company This
Company Guangdong Refers to Guangdong Provincial Expressway Development Co.Ltd.Expressway
Communication Group Refers to Guangdong Communication Group Co. Ltd.Provincial Freeway Refers to Guangdong Provincial Freeway Co.Ltd.Guangfo Company Refers to Guangdong Guangfo Expressway Co. Ltd.Guangdong Expressway
Refers to Yuegao Capital Investment (Guangzhou) Co. Ltd.Capital
Guanghui Company Refers to Guangdong Guanghui Expressway Co. Ltd.Guangzhu East Company Refers to Jingzhu Expressway Guangzhu Section Co. Ltd.
52023 Annual Report
II. Company Profile & Financial Highlights.
1.Company Profile
Expressway A
Stock abbreviation: Stock code 000429 200429
Expressway B
Stock exchange for listing Shenzhen Stock Exchange
Name in Chinese 广东省高速公路发展股份有限公司
Abbreviation of Registered粤高速
Company (if any)
English name (If any) Guangdong Provincial Expressway Development Co.Ltd.English abbreviation (If any) GPED
Legal Representative Miao Deshan
Registered address 85 Baiyun Road Guangzhou Guangdong Province
Postal code of the Registered
510100
Address
Historical change of the company's 1992—1999，4/FDongjian BuildingNo.503Dongfeng Road Guangzhou;Since 1999 85
registered address Baiyun Road Guangzhou Guangdong Province
45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tianhe Disrtict
Office Address
Guangzhou
Postal code of the office address 510623
Internet Web Site www.gpedcl.com
E-mail ygs@gdcg.cn
2. Contact person and contact manner
Board secretary Securities affairs Representative
Name Yang Hanming Liang Jirong
Contact 46/F Litong Plaza No.32 Zhujiang East Road Zhujiang 45/F Litong Plaza No.32 Zhujiang East Road Zhujiang
address New City Tianhe District Guangzhou New City Tianhe District Guangzhou
Tel 020-29004619 020-29004523
Fax 020-38787002 020-38787002
E-mail Hmy69@126.com 139221590@qq.com
3. Information disclosure and placed
Newspapers selected by the Company for information Securities Times China Securities Shanghai Securities Daily and
disclosure Hongkong Commercial Daily.Internet website designated by CSRC for publishing the Annual
www.cninfo.com.cn
report of the Company
The place where the Annual report is prepared and placed Securities affair Dept of the Company
4.Changes in Registration
Organization Code 91440000190352102M
Changes in principal business activities since
No change
listing (if any)
Changes is the controlling shareholder in the On November 2000 In accordance with Cai Guan Zi (2008) No. 109 Document of
62023 Annual Report
past (is any) Ministry of Finance and Yue Ban Han (2000) No. 574 Document of General
Office of Guangdong People's Government the state-owned shares of Guangdong
Expressway originally entrusted to Guangdong Expressway Company (now
renamed as "Guangdong Provincial Expressway Co. Ltd.") for management were
transferred to Guangdong Communication Group Co. Ltd. for holding and
management. After the transfer of state-owned shares Guangdong
Communication Group Co. Ltd. became the largest shareholder of the Company.The nature of equity was defined as state-owned shares.
5. Other Relevant Information
CPAs engaged
Yong Tuo Cerified Public Accountants(Special General
Name of the CPAs
Partnership)
13/F 2 Building No.1 North Street Guandongdian Chaoyang
Office address：
District Beijing
Names of the Certified Public Accountants as the signatories Sun Xiuqing Huang Zhiyan
The sponsor performing persistent supervision duties engaged by the Company in the reporting period.□ Applicable√ Not applicable
The Financial advisor performing persistent supervision duties engaged by the Company in the reporting period
□ Applicable√ Not applicable
6.Summary of Accounting data and Financial index
72023 Annual Report
Whether it has retroactive adjustment or re-statement on previous accounting data
√Yes □ No
Retroactive adjustment or restatement of causes
Accounting policy change
2022 YoY+/-（%） 2021
2023
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Operating income（Yuan） 4879066948.19 4168634113.98 4168634113.98 17.04% 5288057677.93 5288057677.93
Net profit attributable to the shareholders
1633811033.681277069521.901276341322.9828.01%1700406981.991700917099.60
of the listed company（Yuan）
Net profit after deducting of non-
recurring gain/loss attributable to the
1705099801.051311599314.341310871115.4230.07%1693091639.411693601757.02
shareholders of listed company（Yuan）
Cash flow generated by business
3831785563.472752026558.382752026558.3839.24%3669744721.163669744721.00
operation net（Yuan）
Basic earning per share(Yuan/Share) 0.78 0.61 0.61 27.87% 0.81 0.81
Diluted gains per share(Yuan/Share) 0.78 0.61 0.61 27.87% 0.81 0.81
Weighted average ROE(%) 17.30% 14.30% 14.30% 3.00% 20.11% 20.12%
Changed over last year
End of 2022 End of 2021
End of 2023 （％）
Before adjustment After adjustment After adjustment Before adjustment After adjustment
Gross assets（Yuan） 21368963167.41 20267197153.88 20267998963.78 5.43% 18875766799.31 18879726789.61
Net assets attributable to shareholders of
9847531855.899075877244.129075659162.818.50%8982437985.178982948102.78
the listed company（Yuan）
Reasons for the changes in accounting policies and the correction of accounting errors
On November 30 2022 the Ministry of Finance issued the Notice on Printing and Distributing the No. 16Interpretation of Accounting Standards for Business
Enterprises (No. 31[2022]Cai Hui).According to the relevant requirements of the No. 16 Interpretation of Accounting Standards for Business Enterprises the
Company shall make corresponding adjustments to the relevant accounting policies originally adopted.
82023 Annual Report
The lower of the company’s net profit before and after the deduction of non-recurring gains and losses in the last three fiscal years is negative and the auditor's
report of the previous year shows that the Company’s going concern ability is uncertain.□ Yes √No
The lower of the net profit before and after the deduction of the non-recurring gains and losses is negative.□ Yes √No
92023 Annual Report
7.The differences between domestic and international accounting standards
1． Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable
None
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese
accounting standards.□ Applicable √Not applicable
None
8.Main Financial Index by Quarters
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating income 1154573212.16 1185863562.92 1347391508.28 1191238664.83
Net profit attributable to the shareholders of the
409848394.33475795793.66470604350.85277562494.84
listed company
Net profit after deducting of non-recurring
gain/loss attributable to the shareholders of listed 423250545.73 490433079.39 489958203.15 301457972.78
company
Net Cash flow generated by business operation 980823464.23 1033093727.47 979190875.40 838677496.37
Whether significant variances exist between the above financial index or the index with its sum and the
financial index of the quarterly report as well as semi-annual report index disclosed by the Company.□Yes √No
9.Items and amount of non-current gains and losses
√Applicable □Not applicable
In RMBItems Amount (2023) Amount (2022） Amount (2021) Notes
Non-current asset disposal gain/loss(including the write-off
12740003.0362389.244350214.54
part for which assets impairment provision is made)
Government subsidies recognized in current gain and
loss(excluding those closely related to the Company’s 10685002.61 12414047.87 16348006.07
business and granted under the state’s policies)
Gain and loss from change of the fair value arising from
transactional monetary assets transactional financial
liabilities as held as well as the investment income arising
from disposal of the transactional monetary assets 2456768.00 10400000.00
transactional financial liabilities and financial assets
available for sale excluding the effective hedging transaction
in connection with the Company’s normal business
Reverse of the provision for impairment of acounts
25515.00
receivable undergoing impairment test individually
The impairment provision for the advance expenses that
have occurred but need to be defined from the source of -123358138.31 -97749481.71 0.00
funds
Net amount of non-operating income and expense except the
-4515527.98-1798078.90-5840734.56
aforesaid items
102023 Annual ReportItems Amount (2023) Amount (2022） Amount (2021) Notes
Other non-recurring Gains/loss items 921152.92 14877866.34 1252349.09
Less :Influenced amount of income tax 988084.33 -5627816.96 4027139.54
Influenced amount of minor shareholders’ equity (after tax) -30770056.69 -21610132.76 4767353.02
Total -71288767.37 -34529792.44 7315342.58 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses advanced by
the Guangzhou-Foshan Expressway to be clarified it will affect the normal judgment of the Company's
operating performance and profitability by the user of the report.For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses
and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information
Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been
defined as recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
112023 Annual Report
III. Management Discussion & Analysis
I. Industry information of the Company during the reporting period
The Company's main business is the investment construction charging and maintenance management of toll
highways and bridges which shall be classified into the road transport industry.Highway industry is the basic and leading service industry of national economy which can rationally allocate
relevant resources improve the quality and efficiency of economic operation and play a leading role in the
transportation industry. As an important part of the highway industry the expressway is an important national
resource which is characterized by high driving speed large traffic capacity low transportation cost and safe
driving and plays an important role in promoting national economic growth improving people's live quality and
safeguarding national security.With the basic penetration of the "ten-vertical and ten-horizontal" comprehensive transportation corridor and
the basic completion of the "71118" national expressway network planning China's expressway network has been
continuously extended with significantly increased industry development. According to the statistical data of the
2022 Statistical Bulletin on Development of Transportation Industry issued by the Ministry of Transport by the
end of 2023 the total mileage of expressways in China has reached 177300 kilometers with an increase of 8200
kilometers. With China's economic development stepping into a new normal the national economy is constantly
growing the strategies such as coordinated development of Beijing-Tianjin-Hebei regional integration of the
Yangtze River Delta development of the Yangtze River Economic Belt and Guangdong-Hong Kong-Macao
Greater Bay Area construction are further advanced the whole society's demand for supporting services of
expressways is expected to increase continuously and China's expressway industry still witnesses a large
development potential in the future.As an important infrastructure industry for the development of national economy most of the expressway
transportation demands are rigid demands which are less affected by macroeconomic fluctuations and less
cyclical. As the operating income of expressway enterprises is mainly in cash and the cash flow is abundant it
ensures the stability and security of expressway industry operation and finance. When the economy is booming
the rapid growth of traffic can drive the development of the industry to a certain extent; during the period of
economic adjustment the expressway industry can better resist the market impact caused by macroeconomic
changes with its unique rigid demands. Therefore the expressway industry is characterized by strong anti-risk
ability and stable investment income.II.Main Business the Company is Engaged in During the Report Period
The Company's main business in developing and operating expressway and big bridges. It is one of the main
institutions of developing expressway and big bridge in Guangdong Expressway System. The expressway industry
is the industry helped by government.The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai Expressway Jingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultation while investing in Shenzhen Huiyan Expressway Ltd. Guangdong
Jifangzhong Jiangzhong Expressway Co. Ltd. Zhaoqing Yuezhao Expressway fCo. Ltd. Ganzhou
Kangda Expressway Ganzhou Gankang Expressway Co. Ltd.Guangdong Yueke Science and Technology
Microfinance Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd. Hunan Lianzhi
Technology Co. Ltd. SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd. and CMST Nanjing Intelligent
Logistics Technology Co. Ltd.As of the end of the reporting period the company’s share-controlled expressway is 306.78 km and the share-
participation expressway is 295.88 km.
122023 Annual Report
III. Analysis On core Competitiveness
The toll revenue of expressway industry mainly depends on the regional economic development. The
regional economy is the critical factor that influences the traffic volume. The Guangfo expressway and the Fokaiexpressway controlled by the company are part of the National Expressway Network Planning-“Five vertical andseven horizontal” Jingzhu Expressway Guangzhu Section is a fast and convenient expressway Guanghui
Expressway is an important section of the national key highway-the 15th Hengshanwei to Yunnan Qingshuihe
Highway And many of the company’s equity-participation expressways that are part of the main skeleton of the
Guangdong Provincial Expressway Planning-“Ten vertical and five horizontal” which provides a strong
guarantee for stable traffic volume. Meanwhile the regional economy is the critical factor that influences the
traffic volume as Guangdong province is the economically developed region with years’ continuous high growth
of GDP so that provides the stable rising demand for the company.IV. Main business analysis
Ⅰ.General
(1) The overall situation
In 2023 under the correct leadership of the board of directors the Company's management team adhered to
the guidance of party building continuously deepened the reform of state-owned enterprises promoted the
construction of smart transportation accelerated digital transformation achieved continuous improvement of
quality and efficiency resolutely fulfilled political economic and social responsibilities and successfully
completed various annual goals and tasks.
1) Strengthened the investment management of reconstruction and expansion projects. Focused on the
construction of expressway reconstruction and expansion projects and vigorously improved the level of
management and effective investment of expansion project. Efficiently completed the decision-making process
for capital increase investment and Guangdong-Zhaoqing reconstruction and expansion project; Actively
followed up the progress of the upfront work of Guanghui reconstruction and expansion; Actively guided the
management of the equity-holding and participating-in projects and participated in the work preliminary
design review construction drawing review and design review of various major changes of each reconstruction
and expansion project in accordance with the articles of association of the project company and the terms of the
entrusted construction management agreement for reconstruction and expansion.
2) Promoted the quality and upgrading of the construction of characteristic service areas. With the
implementation of the special action of improving the quality and upgrading of the characteristic service area of
the "Millions and Thousands of Projects" as the starting point it promoted the construction of charging
infrastructure along the line and focused on adjusting the construction of the traditional service area of Zhishan
to the new energy characteristic service area of the terminal type.
3) Strengthened the exploiting and reserve of high-quality main business projects. Strengthened the analysis
of industrial base and industrial chain research actively tapped into the resources of expressway projects with
investment value inside and outside in the province and out of the province strengthened the reserve and
research of high-quality projects tracked and analyzed potential road investment projects and related industrial
projects and infrastructure projects and accumulated development advantages.
(2) Participate in the holding of the expressway situation
During the reporting period the domestic economy gradually recovered and the traffic volume of the
equity holding and participating-in expressways except for the Jiangzhong Expressway impacted by the
132023 Annual Report
expansion project and the diversion of the surrounding road network had steadily rebounded and the toll
revenue increased YOY.Volume of vehicle traffic Increase /Decrease(%) Toll income in 2023（Ten Increase /Decrease(%in 2023（Ten thousands thousands）vehicles）
Guangfo Expressway 9493.71 21.72% -
Fokai Expressway 8966.25 17.23% 152144.86 17.38%
Jingzhu Expressway 29.18% 28.15%
7328.58115682.76
Guangzhu East Section
Guanghui Expressway 9001.09 19.21% 213241.43 16.45%
Huiyan Expressway 5244.99 17.30% 21658.17 8.56%
Guangzhao Expressway 4179.30 23.22% 54603.58 17.73%
Jiangzhong Expressway 4768.92 -6.82% 31256.43 -8.60%
Kangda Expressway 152.45 31.18% 29168.29 6.12%
Gankang Expressway 547.89 39.06% 24397.74 29.23%
Guangle Expressway 3975.70 5.78% 310552.56 7.12%
Note. According to the informal letter No. 24-[2022] Yue Transportation Operation-"Notice of the
Department of Transportation of Guangdong Province on Issues Concerning the Expiration of Toll Collection
of Guangfo Expressway" issued by Guangdong Provincial Department of Transportation Guangfo Expressway
shall stop toll collection from 0:00 on March 3 2022.
2. Revenue and cost
(1)Component of Business Income
In RMB
2023 2022 Increase
Amount Proportion Amount Proportion /decrease
Total operating
4879066948.19100%4168634113.98100%17.04%
revenue
Industry
Highway
4810921181.6598.60%4095766725.5998.25%17.46%
transportations
Other 68145766.54 1.40% 72867388.39 1.75% -6.48%
Product
Highway
4810921181.6598.60%4095766725.5998.25%17.46%
transportations
Other 68145766.54 1.40% 72867388.39 1.75% -6.48%
Area
Guangfo
230723.260.00%65600461.661.57%-99.65%
Expressway
Fokai
1521448612.5931.18%1296212805.5931.09%17.38%
Expressway
Jingzhu
1156827589.2623.71%902734286.5521.66%28.15%
Expressway
142023 Annual Report
Guangzhu
Section
Guanghui
2132414256.5443.71%1831219171.7943.93%16.45%
Expressway
Other 68145766.54 1.40% 72867388.39 1.75% -6.48%
Sub-sales model
Highway
4810921181.6598.60%4095766725.5998.25%17.46%
transportations
Other 68145766.54 1.40% 72867388.39 1.75% -6.48%
(2)Situation of Industry Product and District Occupying the Company’s Business Income and Operating Profit
with Profit over 10%
√ Applicable □Not applicable
In RMB
Increase/decrea Increase/decrea
Increase/decrea
se of business se of gross
se of revenue in
Gross profit cost over the profit rate over
Turnover Operation cost the same period
rate(%) same period of the same period
of the previous
previous year of the previous
year(%)
(%) year (%)
Industry
Highway
4810921181.651707788447.6264.50%17.46%10.15%3.79%
transportations
Product
Highway
4810921181.651707788447.6264.50%17.46%10.15%3.79%
transportations
Area
Fokai
1521448612.59604227450.9260.29%17.38%3.65%9.56%
Expressway
Jingzhu
Expressway
1156827589.26390529049.0066.24%28.15%14.02%6.74%
Guangzhu
Section
Guanghui
2132414256.54713221643.3066.55%16.45%17.11%-0.29%
Expressway
Sub-sales model
Highway
4810921181.651707788447.6264.50%17.46%10.15%3.79%
transportations
Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main
business based on latest on year’s scope of period-end.□ Applicable √Not applicable
(3)Whether the Company’s Physical Sales Income Exceeded Service Income
□ Yes √ No
(4)Degree of Performance of the Significant Sales Contract Signed up to this Report Period
□ Applicable √Not applicable
(5)Component of business cost
Industry category
152023 Annual Report
In RMB
20232022
Industry
Proportion in the Proportion in the
category Items Increase/Dec
Amount operating costs Amount operating costs rease (%)
(%)(%)
Highway Depreciation
transportati and 1137727666.65 65.35% 1024154288.83 64.56% 0.79%
ons Amortized
Highway Out of
transportati pocket 570060780.97 32.75% 526213287.61 33.17% -0.42%
ons expenses
Other Other 33029810.55 1.90% 35981459.04 2.27% -0.37%
(6)Whether Changes Occurred in Consolidation Scope in the Report Period
□Yes□No
(7)Relevant Situation of Significant Changes or Adjustment of the Business Product or Service in the
Company’s Report Period
□ Applicable √Not applicable
(8)Situation of Main Customers and Main Supplier
Main Customers
□ Applicable √Not applicable
Main Supplier
□ Applicable √Not applicable
3.Expenses
In RMB
Increase/
2023 2022 Decrease( Notes
%)
Administrat
ive 189461539.01 191426081.46 -1.03%
expenses
Financial The interest income in the current period increased over
121774781.75 191071151.10 -36.27% the previous period. The interest expense for the current
expenses period decreased over the previous period.R & D
3245205.00 14591773.12 -77.76% In the current period the R&D projects have decreased
expenses
162023 Annual Report
4. Research and Development
√ Applicable □ Not applicable
Name of main R&D Project Expected impact on the future development of
Project purpose Goal to be achieved
project progress the Company
Through on-site survey model construction
indoor experiments and outdoor tests focus on
(1) Build a calculation model of water film
studying the waterproof and drainage design of
thickness suitable for wide pavement in
wide pavement construct the calculation model
Guangdong Province. (2) Put forward the road
of water film thickness suitable for Guangdong
geometric design index of reconstruction and The study results have been applied to the
Province put forward the geometric design index
expansion of wide pavement within the allowable waterproof and drainage design of the wide
Guide for of wide pavement systematize the waterproof
runoff length. (3) Optimize the relevant index pavement of the Group's reconstruction and
Waterproof and and drainage design in terms of pavement surface
parameters and requirements of current drainage expansion project which effectively reduces the
Drainage Design of drainage pavement internal drainage and Completed
system design and detail the construction points occurrence of traffic accidents in case of rainfall
Wide Pavement of pavement structure and at the same time
of drainage system in special roads. (4) Put improves traffic safety and guarantees life and
Expressway improve the drainage system design parameters
forward the pavement structure type material property and has extremely remarkable social
of existing wide pavement and finally compile
performance index requirements and construction and economic benefits.the Guide for Waterproof and Drainage Design
points under different drainage requirements. (5)
of Wide Pavement of Expressway in Guangdong
Compile the Guide for Waterproof and Drainage
Province providing technical support and
Design of Wide Pavement of Expressway.guidance for the reconstruction and expansion of
wide expressway.
(1) Obtain the effectiveness and time-varying
effect of typical reinforcement measures for box
Based on the bridge characteristics of Foshan–
girder bridges on in-service expressways. (2) The Project carries out post-evaluation on the
Kaiping Expressway and the maintenance
Establish a post-evaluation method for reinforced box girder bridges on Foshan–Kaiping
projects that have been carried out study the
Study on post- reinforcement effect of box girder bridges on in- Expressway in terms of technology safety
reinforcement methods and effects of bridge
evaluation service expressways based on weighted layered influence and reproducibility. Through this
structure maintenance projects and study the
technology after synthesis method. (3) Based on the evaluation study form the evaluation system of box girder
effectiveness of reinforcement measures and
strengthening effect Opened results of the reinforcement effect of the typical bridge which can guide the maintenance
construct a set of post-evaluation methods for
of box girder bridges box girder bridges in Foshan–Kaiping management decision of Foshan–Kaiping
reinforcement measure effect of bridge structure
on in-service Expressway formulate the management and Expressway and even the Group box girder
considering the timeliness of reinforcement
expressways maintenance method of the typical reinforced bridge reinforcement ensure the safe operation
measures and establish a technical guide for
box girder bridges on Foshan–Kaiping and sustainable development of the reinforced
post-evaluation of the reinforcement measure
Expressway and verify and improve the post- bridge and save maintenance costs.effect of bridge structure .evaluation method for reinforcement effect of the
box girder bridges on in-service expressways.Study on unattended Construct the existing toll station install (1) Optimize and improve the existing system The digital and intelligent operation and
Completed
toll collection intelligent card issuing and toll collection functions and optimize the construction scheme management of Foshan–Kaiping Expressway
172023 Annual Report
system technology equipment and supporting equipment equip with of expressway reservation service platform. (2) will be promoted and special study will be
of toll station toll collection software which breaks through the Further meet the needs of users of fresh carried out in two parts: all-weather intelligent
traditional fixed-point restriction of toll station agricultural products trans-regional combine- monitoring of Foshan–Kaiping Expressway and
personnel builds self-service card issuing and harvesters (rice transplanters) for combined smart expressway construction so as to improve
payment system realizes on-site self-service card operation and transport vehicles for reservation the efficiency of high-speed operation and
issuing self-service payment and automatic and inspection services. (3) Put forward the transportation safety promote the demonstration
processing of special circumstances at toll optimization and upgrading scheme for the and application of smart expressway and create a
station with multiple advantages such as "centralized optimization system" and the ETC smart expressway road demonstration site with
"unattended non-cash transaction and fast vehicle fee display for special containers. "advanced technology moderate cost and first-
passage" further improving the accuracy class domestic status".passage efficiency and overall operation ability
of the passage routes for toll station vehicles.Integrate and analyze the road toll data road
portal and driveway snapshot data departmental
and provincial audit platform audit data and
Beidou audit system data and extract the data
content suitable for road data analysis including
license plate vehicle type entrance and exit
(1) Develop a data analysis model that integrates
portal information time information stay
road toll data license plate recognition data The Project can effectively improve the
information in service area and other information
Technical study on departmental and provincial audit data and efficiency of road toll audit reduce the workload
content. According to the content of the
audit and pursuit Beidou audit system data. (2) Develop a road of data analysis of toll audit and improve the
integrated data simulate and analyze the main
evasion assistance Completed audit database containing the main types of efficiency of pursuit evasion service by
types of evasion charges on expressways to input
system for road toll evasion fees. (3) Develop the characteristic developing the data audit and accurate pursuit
the effective data analyze in combination with
collection model of the evasion vehicle's driving route. (4) evasion service system of the main types of toll
the characteristics of various types of evasion
Develop the software with audit data processing evasion at the road level.charges and output the audit data labels and
and audit pursuit evasion service functions.evidence chains with high accuracy. Based on the
data content and analysis model develop the
visual convenient and easy-to-use software of
the audit and pursuit evasion assistance system
and apply in the road toll audit service
department.
182023 Annual Report
Company's research and development personnel situation
2023 2022 Increase /decrease
Number of Research and
Development persons 0 25 -100.00%
(persons)
Proportion of Research and
0.00%0.81%-0.81%
Development persons
Academic structure of R&D personnel
Bachelor 0 25 -100.00%
Age composition of R&D personnel
30-40 years old 0 2 -100.00%
Over 40 years old 0 23 -100.00%
The Company's R & D investment situation
2023 2022 Increase /decrease
Amount of Research and Development
6457084.0014591773.12-55.75%
Investment ( RMB)
Proportion of Research and Development
0.13%0.35%-0.22%
Investment of Operation Revenue
Amount of Research and Development
3211879.000.00
Investment Capitalization ( RMB)
Proportion of Capitalization Research and
Development Investment of Research and 49.74% 0.00%
Development Investment
Reasons and influence of significant changes in R&D personnel composition of the Company
□Applicable □ Not applicable
In 2022 the R&D personnel of the Company were mainly the R&D personnel of Guangdong Guanghui
Expressway Co. Ltd. a holding subsidiary; In 2023 the Company has no R&D personnel.The Reason of the Prominent Change in Total Amount of Research and Development Input Occupying the
Business Income Year on Year
□ Applicable□Not applicable
Reasons for the drastic change of capitalization rate of R&D investment and its rationality explanation
□Applicable □ Not applicable
Some research and development projects implemented this year are eligible for capitalization.
5.Cash Flow
In RMB
Items 2023 2022 Increase/Decrease(%)
Subtotal of cash inflow received
5514711610.624397687883.8025.40%
from operation activities
Subtotal of cash outflow received
1682926047.151645661325.422.26%
from operation activities
Net cash flow arising from 3831785563.47 2752026558.38 39.24%
192023 Annual Report
operating activities
Subtotal of cash inflow received
221115093.91198020328.7711.66%
from investing activities
Subtotal of cash outflow for
1705898439.581196520014.0142.57%
investment activities
Net cash flow arising from
-1484783345.67-998499685.2448.71%
investment activities
Subtotal cash inflow received from
850525000.002877350200.00-70.44%
financing activities
Subtotal cash outflow for financing
2779864198.303302360155.98-15.82%
activities
Net cash flow arising from
-1929339198.30-425009955.98353.95%
financing activities
Net increase in cash and cash
416969202.671329505040.78-68.64%
equivalents
Notes to the year-on-year change of the relevant data
√Applicable □ Not applicable
1. The total of cash inflow from operating activities increased by 25.40% YOY which was mainly due to the
increase in toll revenue compared to the previous period and the receipt of government subsidies in this period.
2. The total cash outflow from investment activities increased by 42.57% YOY which was mainly due to the
continuous promotion of the reconstruction and expansion of the Guangzhou-Zhuhai section of the Beijing-
Zhuhai Expressway.
3. The total cash inflow of financing activities decreased by 70.44% YOY which was mainly due to that China
Development Bank obtained a special loan for the renovation and expansion of the Beijing Zhuhai Expressway
Guangzhou Zhuhai section last year.
4.The net increase in cash and cash equivalents decreased by 68.64% year on year which was the
comprehensive influence of the changes in net cash flow from operating activities investment activities and
financing activities.Reasons of major difference between the cash flow of operation activity in report period and net profit of the
Company
√Applicable □ Not applicable
In RMB
Supplementary information The amount of this period
I. Adjusting net profit to cash flow from operating activities
Net profit 2262340136.06
Add: Impairment loss provision of assets 10443015.96
Credit loss provision 123166054.97
Depreciation of fixed assets oil and gas assets and consumable biological assets 1121749435.32
Depreciation of the use right assets 10417949.40
Amortization of intangible assets 26628234.56
Amortization of Long-term deferred expenses 350625.00
Loss on disposal of fixed assets intangible assets and other long-term deferred assets
202023 Annual Report
Fixed assets scrap loss 12135983.34
Net exposure-hedging losses
Loss on fair value changes -2456768.00
Financial cost 215055241.95
Loss on investment -312359708.13
Decrease of deferred income tax assets 89208863.35
Increased of deferred income tax liabilities -17648006.70
Loss on investment
Decrease of deferred income tax assets -161341092.73
Increased of deferred income tax liabilities 452543414.34
Other 1620519.90
Net cash flows arising from operating activities 3831853898.59
V. Analysis of Non-core Business
√ Applicable □Not applicable
In RMB
Proportion in total
Amount Explanation of cause Sustainable (yes or no)
profit
Investment Income Operating accumulation of312359708.13 10.49% Yes
shareholding companies
Loss on fair value Changes in fair value of equity
2456768.00 0.08% No
changes investment
Asset impairment -10443015.96 -0.35% No
Non-operating Mainly insurance claims and
4745630.19 0.16% No
income road property claims
Non-operating Mainly road property repair
21397141.51 0.72% No
expenses expenditure
Mainly to accrue the credit
loss of Guangzhou-Foshan
Credit impairment Expressway custody expenses
-123166054.97 -4.14% No
loss receivable from Department of
Transport of Guangdong
Province
VI. Condition of Asset and Liabilities
1.Condition of Asset Causing Significant Change
In RMB
End of 2023 End of 2022 Notes to
Proportio
the
Proportion in Proportion in n
significa
Amount the total Amount the total increase/d
nt
assets(%) assets(%) ecrease
change
Monetary fund 4718631732.20 22.08% 4290581490.78 21.17% 0.91%
212023 Annual Report
Accounts
139899420.240.65%108368797.560.53%0.12%
receivable
Investment real
2447026.450.01%2668144.930.01%0.00%
estate
Long-term
equity 3095578288.00 14.49% 2923305042.30 14.42% 0.07%
investment
Fixed assets 9010168712.92 42.16% 10098252638.07 49.82% -7.66%
Construction in
1960092562.229.17%753565502.123.72%5.45%
process
Use right assets 24967509.81 0.12% 4077555.43 0.02% 0.10%
Shore-term
110085708.330.52%430387597.202.12%-1.60%
loans
Long-term
5944716050.0027.82%5566595350.0027.46%0.36%
borrowing
Lease liabilities 13482202.97 0.06% 150984.47 0.00% 0.06%
Overseas assets account for a relatively high proportion.□ Applicable √ Not applicable
2.Asset and Liabilities Measured by Fair Value
222023 Annual Report
√Applicable □ Not applicable
In RMB
Gain/Loss on fair Cumulative fair value Impairment Purchased amount Sold amount in
Other
Items Opening amount value change in the change recorded into provisions in the in the reporting the reporting Closing amount
changes
reporting period equity reporting period period period
Financial assets
1. Trading financial
assets (excluding
101400000.002456768.0080000000.00183856768.00
derivative financial
assets
4.Other equity
1557303730.98218487709.101534396887.63
instrument investment
Subtotal of financial
1658703730.982456768.00218487709.100.0080000000.000.000.001718253655.63
assets
Total of the above 1658703730.98 2456768.00 218487709.10 0.00 80000000.00 0.00 0.00 1718253655.63
Financial liabilities 0.00 0.00
Other change
Did any significant change occur to the attribute of the Company’s main asset measurement during the reporting period
□ Yes √No
232023 Annual Report
3. Assets right restriction till end of reporting period
The balance of restricted bank deposits at the end of the period was RMB 1221200.00 which was the land
reclamation fund deposited into the fund custody account for the reconstruction and expansion project of sanbao
to shuikou section of Fokai Expressway.VII. Investment situation
1. General
√ Applicable □ Not applicable
Current Investment Amount(Yuan) Same period of last year (Yuan) Change rate
1285100576.31857896694.3349.80%
242023 Annual Report
2.Condition of Acquiring Significant Share Right Investment during the Report Period
□Applicable □Not applicable
In RMB
Gain or Wheth
Progress
Name of Capit Less or er to
Share Investme up to Anticipat Date of
the Main Investme Investment al Product the Involv Disclosure
Proportion Partner nt Balance ed Disclosu
Company Business nt Way Amount Sourc Type Current e in Index
% Horizon Sheet Income re
Invested e Investme Lawsui
Date
nt t
On the
Xinyue
basis of Announcem(Guangzho
Guangdon the term ent ofu)
g Resolutions
Investment
Jiangzhon of Limited thExpressw Increase 110250000. Self Co. Ltd. Complet
of the 20
July
g 15.00% operation Compa No (Provisional)
00 funds Guangdon 312021
Expressw ay capital edapproved ny Meeting ofg Highway
ay Co. the Ninth
Constructi
Ltd. by the Board of
on Co. governme Directors
Ltd.nt
110250000.
Total -- -- -- -- -- -- -- -- 0.00 0.00 -- -- --
00
3.Situation of the Significant Non-equity Investment Undergoing in the Report Period
□Applicable □Not applicable
In RMB
Project Investmen Fixed Industry Investment Accrued Actual Capita Project Anticipate Accrued Reasons Disclosur Disclosure
name t method investment involved in amount in this Investment l schedule d income Realized for not e date Index
252023 Annual Report
s or not investment reporting period Amount up to Source Income Reaching
projects the End of up to the the
Reporting Period End of Planned
Reportin Schedule
g Period and
Anticipate
d Income
Nansha-
Zhuhai Announcemen
Section of t of Resolution
Guangzhou Self of the Second
Self-built Yes Expresswa 1094850576.3 1648394518.4 October- Macao and 12.00% No (Provisional)
y 1 8 222022
Expressway Loan Meeting the
Was rebuilt Tenth Board
and of Directors
Expanded
1094850576.31648394518.4
Total -- -- -- -- -- 0.00 0.00 -- -- --
18
262023 Annual Report
4.Investment of Financial Asset
（1）Securities investment
√ Applicable □ Not applicable
In RMB
Purchas Sale
Book value Book value
Mode of Changes in Cumulative e amoun Gain/los
Stock Initial balance at the balance at the Source
Security Securit accounting fair value of fair value amount t in s of the Accountin
Abbreviatio investment beginning of end of the s of
category y code measureme the this changes in in the the reportin g items
n: cost the reporting reporting funds
nt period equity this this g period
period period
period period
Other
Domesti
equity
c and Everbright -
601818 517560876.8 722232678.0 164678460.8 682239337.6FVM 39993340.4 instrument Self
foreign Bank 0 8 0 08 investmen
stocks
t
-
517560876.8722232678.0164678460.8682239337.6
Total -- 39993340.4 0.00 0.00 0.00 -- --
0800
8
Disclosure Date of Announcement
on Securities Investment Approved July 222009
by the Board of Directors
Disclosure Date of Announcement
on Securities Investment Approved
August 72009
by the Shareholders Meeting(If
any)
272023 Annual Report
2）Investment in Derivatives
□ Applicable √ Not applicable
The Company had no investment in derivatives in the reporting period.
5.Application of the raised capital
□ Applicable √ Not applicable
The Company had no application of the raised capital in the reporting period.VIII. Sales of major assets and equity
1. Sales of major assets
□ Applicable √ Not applicable
The Company had no sales of major assets in the reporting period.
2.Sales of major equity
□ Applicable √ Not applicable
282023 Annual Report
IX. Analysis of the Main Share Holding Companies and Share Participating Companies
√ Applicable □ Not applicable
Situation of Main Subsidiaries and the Joint-stock Company with over 10% net profit influencing to the Company
In RMB
Company Company Registered Operating
Leading products and services Total assets Net assets Operating profit Net Profit
Name type capital Income
Jingzhu
Expressway RMB
Guangzhu Subsidiary The operation and management of 2.8557 4099184581.71 1882977400.08 1191507531.28 704103868.66 521658129.01
Guangzhu Expressway
Section Co. billion
Ltd.Investment in and construction of
Guanghui Expressway Co. Ltd. and
Guangdong supporting facilities the toll collection and
Guanghui Sharing maintenance management of Guanghui RMB
2.3516784540105326.144196307942.552151996795.831464522107.471077811437.35
Expressway company Expressway The Guanghui Expressway's billion
Co. Ltd. supporting gas station salvation vehicle
maintenance vehicle transport catering
warehousing investment and development
Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Not applicable
Particulars about the Mutual holding companies
None.
292023 Annual Report
X. Structured subject situation controlled by the company
□ Applicable √ Not applicable
XI.Prospect for future development of the Company
In 2024 the Company will do a solid job in the investment construction operation and management of
expressways accelerate the layout of emerging industries in the field of transportation promote the construction
of smart transportation strengthen the quality internally and shape the image externally seize the opportunities
of the times with enterprising courage and professional attitude create value for the group and win development
for the Company. The overall goal for 2024 is to achieve operating income of 4.714 billion yuan with the
operating costs controlled within 1.791 billion yuan.
1. Strengthening the top-level design and grasping the implementation of strategies. The Company will promote
the implementation of the mid-term adjustment plan of the Company's "14th Five-Year Plan" development plan
strengthen the closed-loop management system of strategic management and control in combination with the
Company's "14th Five-Year Plan" development plan and strengthen the assessment and accountability
mechanism of strategic management through the implementation of strategic management linked to budget
assessment salary etc.; Strengthen implementation assessment and dynamic adjustment and formulate
strategic implementation pathways resource allocation plans and supporting safeguard measures based on
value enhancement.
2. Promoting the investment and construction of reconstruction and expansion projects. According to the
progress of the Guanghui reconstruction and expansion project it will carry out project investment and
financing analysis in a timely manner; promote the construction projects in Guangzhou-Zhuhai-east and
Jiangzhong and ensure the capital needs of project construction. Meanwhile we will continue to tap into the
source of expressway projects increase the reserve of high-quality projects do a good job in the analysis and
evaluation of existed projects and strive to seek investment opportunities.
3. The service of the "Millions and Thousands of Projects" is to achieve effective results. The quality and
upgrading of the characteristic service area of innovative business formats will be accelerated and the
construction of Zhishan Service Area (North District) and the "Micro transformation" project of Yayao Service
Area will be accelerated. It will increase the investment and mergers and acquisitions in high-quality
expressway projects to promote the reasonable growth of investment scale. The Company will focus on the
investment layout of strategic emerging industries such as infrastructure construction and smart transportation
as well as continue to play the role of Guangdong's high-tech capital market investment platform deepen
resource development quantify task indicators and expand revenue space.
4. Improving the level of post-investment empowerment projects. We will continue to focus on new energy
equity participation projects focus on post-investment empowerment and value creation assist the invested
companies to expand their business improve management carry out cooperation actively serve and integrate
into the national development strategy center on green empowerment to promote the upgrading of industrial
base and actively grasp investment and cooperation opportunities in transportation infrastructure and green and
low-carbon fields.
302023 Annual Report
XII. Structured subject situation controlled by the company
□ Applicable √ Not applicable
Reception Place of Way of Types of Main contents discussed and
Visitors received Basic index
time reception reception visitors information provided
The discussion mainly
1. The main content of
includes the Company's research:1. the daily operation;
Meeting 2. the company's financial dataCICC Research Department: Zhang Wenjie Gu Yuanfan; operation the main work
Room of analysis;3. developmentFebruary Field CICC's fixed-income division: Zia Luchan Wang Yuyan;E completed the progress of the
Organization strategy; 4. analysis on the
22023 the research Fund: Lin Shanshan Liang Yuyin;First Beijing Investment: invested reconstruction and industry. 2.Primary data
Company Chhen Hua；CCB Wealth Management: Cu Pengzhan expansion projects and the investigation: Public
Company's development plan information company regularly
reports
and work priorities.Industral Securities:Wang Chunhuan Chen Gang；Capital
Dynamics Asset Management (HK) Pte Ltd Wu Xiongwei；
Shanghai Houshan Investment Management Co. Ltd San The discussion mainly
1. The main content of
Dan；NEUBERGERBERMAN ASIA LIMITED Wu includes the Company's research:1. the daily operation;
Xinger；Happy Life Liu Yong；Changjiang Securities Hu
Meeting 2. the company's financial dataJunwen；Ernst & Young Lu Jingwen；Guolian Secutieies Li operation the main work
March Room of completed the progress of the
analysis;3. development
By Phone Organization Wei；AIA Huang Wenjing；Guotai Junan Zhu Chenxi； strategy; 4. analysis on the
212023 the Zheshang Fund Zhang Zeyue；Huatai Securities Lin invested reconstruction and industry. 2.Primary data
Company Xiaying；Bosi Fund Chen Muhan；China Securities Han expansion projects and the investigation: Public
Jun；Everbright Securities Cheng Xinxing；Chutian
information company regularly
Expressway Yu Zhongxing；Shaanzi International Zhang Company's development plan
reports
Shichao；Guotai Junan asset Management Zhongjin and work priorities.Company Gu Yun fan;Sheshang Securities Feng Siqi；JPM
Asset Mgmt Vivian Tao；Chongjing Investment Liu Jingwen
Industral Securities Zhang Xiaoyun Wang Chunhuan；Bank
1. The main content of
of China Investment Management Zhang Bin；China The discussion mainly
research:1. the daily operation;
Securuties Han Jun Li Chen；Zhong Ou AMC Xie Yuzhuo； includes the Company's
Meeting 2. the company's financial dataCICC Gu Yunfan；Zheshang Securities Chen Yihan Huang operation the main work
August Room of
analysis;3. development
By Phone Organization An Feng Siqi; China Merchants Financial Management Co. completed the progress of the strategy; 4. analysis on the
292023 the Ltd Zhao Jie;Changjiang Secuties（Shanghai）Asset industry. 2.Primary data
Company Management Co. Ltd. Yang Jie；Great Wall Secturites Xiao
invested reconstruction and
investigation: Public
Xinyi；Yingda Insurance Asset Management Co. Ltd. Jiang expansion projects and the information company regularly
Siyuan；E fund Yang Kang；Sunshine Insurance Zhuang Company's development plan reports
Yan；Xinhua Fund Management Zheng Yi；Wanjia Fund
312023 Annual Report
Reception Place of Way of Types of Main contents discussed and
Visitors received Basic index
time reception reception visitors information provided
Management Song Xiaoxiun;Tianfenng Securities Li and work priorities.Yunpeng；BOSC ASSET lUO Xiangtian;；Shanghai
Securities Shao Yafei；Shanghai Tuling Asset Management
Zhao Zifeng；Shanghai Shanghai Private Fund Management
Partnership (Limited partnership) Chen Hao; Shanghai
Everbright Securities Asset Management Co. Ltd Cao
Binjia；Qianhe Capital Management Zou Tianye；Minsheng
Royal Fund Liang Xin；Longyun Investment Li Shengnong；
China Universal Asset Management Yan Yongqing；Huatai
Securities Lin Xiaying Li Yanguang；Hotland Innovation
Fund Yang Yi Wang Yaqian; Hengyuan Capital Bian
Dali;United viasion asset management Zhang Duo; Guoxin
Securities Zeng Fanji
Zhongtai Securities Research Institute Du Chong
Shaomeiling;；insheng Bank financial management Zhang
Zhuoxing; Everbright Prudential Fund Lin Xaofeng; Qingli
Investment Li Shu；Zhongtai Wang Yanqian Tang Chao;
Truvalue Asset Management Li HAN; Shanghai Caitong
Asset Mangement Chen Jinxin;Juming Investment Huibowen;
Deppon Fund Management Ding Hanyi；China Post Life
Insurance Company Co. Ltd Zhao Yang; Agriculture Bank of The discussion mainly
1. The main content of
China Li Rong; Hotland Innovation Fund Yang Yi;Taikang includes the Company's research:1. the daily operation;
Fund Ma Duichao; Oriental self-run Zhang Kaiyuan;
Meeting operation the main work 2. the company's financial dataYuancheng Investment Ma Lina; Hexu Zhiyuan Zhang Duo;
Room of analysis;3. developmentSeptember By Phone Organization Pinan Asset Management Wang Jiacheng; Jiashi Fund Gong
completed the progress of the
strategy; 4. analysis on the
182023 the Chu; Western Profits Fund Management Co. Ltd Wen invested reconstruction and industry. 2.Primary data
Company Zhenyu; Danshuiquan Investment Management Liu Xiaoyu; expansion projects and the investigation: Public
Feng Lan Asset Cai Rongzhuan; Huitianfu fund Lao Jienan;
information company regularly
Xinhua Asset Management Shu Liang; Yuanxin Investment Company's development plan
reports
Zhou Yang; AIA Huang Wenjing Zheshang Fund Zhang and work priorities.Zeyue; Nuoan Fund Management Li Di; Huamei International
Investment Yan Bing;
Puxin Investment Zhu Bingbing; China Post Life Insurance
Company Co. Ltd Wang Dong；
Huatai Securities Liu Rui;Taikang Fund Song Renjie；Morgan
huaxin Si Wei；HSBC Jintrust Fund Management Company
Limited. Xu Ben; Shanghai Yude Investment Management
322023 Annual Report
Reception Place of Way of Types of Main contents discussed and
Visitors received Basic index
time reception reception visitors information provided
Chang Yue；
verbright Pramerica Fund Management Co.Ltd. Huang
Yaru;oberweis AM fangwen zhou；Industrial Fund
Management Co.Ltd Gao Sheng;Nuoan Fund Management
Huang Youwen;
China Life Insurance Asset Management Co. Ltd Dun Sha;
Tiping Asset Management Zhao Yang; China Merchants Fund
Management Co.Ltd. Xu Shang; Jingshun Great Wall Lu Yan;
Shanghai Zhengxingu Investment Mangement Li Anning
PICC Asset Management Co. Ltd Zhang Xianning;Aegon-
Indistrial Fund Zhang Xiaofeng；Beijing Kaisibo Investment
Management Lin Xiaowen; Hezhong Asset Management Du
Ruochen; Shanghai Natural Picking up Bay Investment
Management Partnership (Limited Partnership) Zhuang
Xiaoyang; ICBC Credit Suisse Asset Management Co. Ltd.Gu Heng; Guangdong Haihui Huasheng Securities
Investment Management Pan Yongli; CCB Wealth
Management Wu Jieben; Hongde Fund Management Liu Fei;
Fullgoal Fund Zhang Zeyue; The discussion mainly
1. The main content of
Hainan Sirui Private Fund Management Ma Jin; includes the Company's research:1. the daily operation;
Danshuiquan(Beijing) Investment Management Lin
Meeting 2. the company's financial dataShenglan; Zhuhai Hengqin Changlehui Capital Management operation the main work
Room of analysis;3. developmentSeptember By Phone Organization Zhang Chenquan; Goldman Sachs Asia Wen Shuhan; CIC
completed the progress of the
strategy; 4. analysis on the
272023 the Shoushan International Asset Management Co. Ltd Ye invested reconstruction and industry. 2.Primary data
Company Zhigang; expansion projects and the investigation: Public
China Post Life Insurance Co. Ltd Yang Chen; Zhuhai
Company's development plan information company regularlyLezhong Investment Management Yang Hunlun;
reports
Shanghai Guozan Private Equity Fund Management and work priorities.Partnership (Limited partnership) Guo Yulei;Shanghai
Xiasheng Asset Management Partnership(limited partnership)
Hong Linxiang; Shanghai Baixia Investment Management
Center(limited partnership) Gu Zhiye; Shanghai Orient
Securities Asset Management Co. Ltd Chen Zhizhen;
Shanghai Hundun Investment(Group) Co. Ltd. Li Xiaonan;
Shanghai Yaozhi Asset Management (limited partnership)
Zhang Yiling; Guotai Life Insurance Liu Bangjia; Guotai
Investment Zheng Zongjie; Anxin Sectrities Chen Jiamin;
332023 Annual Report
Reception Place of Way of Types of Main contents discussed and
Visitors received Basic index
time reception reception visitors information provided
ICBC International Holdings Limited Wu Yawen Tuopu Fund
Zhang Xiao; Taikang Asset Management Qian Jiajia;
Shenzhen Zhongtian Huifu Fund Management Co. Ltd Xu
Gaofei; Shenzhen Sihai Yuantong Investment Co. Ltd. Wu
Guanghua;Shenzhen Shangcheng Asset Mangement Huang
Xiangqian; Zhuhai Hengqin Chenglehui Capital Management
Zhang Xiaoren; Suzhou Longyuan Investment Management Li
Shengnong Qingdao Jinguang Zijin Venture Investment
management lei Jing;IGWT Investment Liao Keming
CITIC Asset Management Liu Jiangchao; Huaxia Life Xu
Haiyan; Shanghai Ducheng Investment Management Zhang
Xun；
Shanghai Mingshi Private Fund Management Co. Ltd Ding
Ke; Qingli Investment Zhao Dong;Xinzhifeng Investment
Zhou Wenjia;LuDijinchuang Technology Group Co. Ltd.Zheng Zhuopu; The discussion mainly
1. The main content of
Telligent Capital Management Ivan Yim；Jingshun Great includes the Company's research:1. the daily operation;
Wall Fund Management Sun Jingxi；
Meeting Yongying Fund Management Hung Run; Hongde Fund operation the main work
2. the company's financial data
analysis;3. development
October Room of By Phone Organization Management Liu Yunchang ；Shanghai Ruiyi Investment
completed the progress of the
strategy; 4. analysis on the
302023 the Development Genter(limited partnership) Wang Luqing; invested reconstruction and industry. 2.Primary data
Company Huaxia life Huang Bo； expansion projects and the investigation: Public
CPE Yuanfeng Li Ruomu；Unified Investment Zheng information company regularly
Zongjie; Boshi Fund Chen Muhan; Oriental self-run Zhang Company's development plan
reports
Kaiyuan; China Post Securities Co. Ltd Chen Liang;Kunlun and work priorities.Health insurance Xu Sai；Huatai self-run Li Yanguang;
CITIC SECURITIES Yuanzi; Sifan Investment tulataska；
Shengzhen Qianhai Yingfeng Capital Management Mao
Wentaol ;Guoxin Investment Zhang Yao; Xuanyuan
Investment He Jiyao ；Hotland Innovation Fund Wang
Yaqian Fuguo Fund Zhang Zeyue; SDIC UBS Yuan Ye
342023 Annual Report
IV. Corporate Governance
I. General situation
The Company strictly followed the requirement of laws and regulations in
Law>< Code of Corporate Governance for Listed Companies in China>
on improving corporate governance structures improving normative operation level. Company had stipulated
rules such as
committee in board of directors working guide of general manager etc. and internal control system basically
covering all operating management such as company financial management investment management
information disclosure related transaction external guarantee fund raising etc. All rules are well implemented.In the report period strictly following the relevant provisions of “Company Law”and “Regulations” the
shareholder’s meeting of our bank effectively performed the functions. The board of directors is to be responsible
for the shareholder’s meeting to take the ultimate responsibility for the bank’s operation and management and to
convene a meeting as well as performing the function and power according to legal procedure. In line with the
attitude which is responsible for all shareholders and keeping in close contact and communication with the board
of directors and the management the board of supervisors carries out the assessment work on duty exercising for
the board of directors and the board of supervisors effectively performing functions and obligations of
supervision.Does there exist any difference in compliance with the corporate governance the PRC Company Law and the
relevant provisions of CSRC
□ Yes √No
There exist no difference in compliance with the corporate governance the PRC Company Law and the
relevant provisions of CSRC.II. Independence and Completeness in business personnel assets organization and finance
1. Independent business
The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangdong
Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway Co. Ltd. Ganzhou Kangda Expressway
Ganzhou Gankang Expressway Co. Ltd. Guangdong Yueke Science and Technology Microfinance Co. Ltd.Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd Hunan Lianzhi Technology Co. Ltd.SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd. and CMST Nanjing Intelligent Logistics Technology
Co. Ltd.The Company has outstanding main operation independent and complete business and the ability of
independent operation. All business decisions of the Company were made independently being completely
separated from the shareholder with actual control. Related transactions were carried out in light of the principle
of fair transaction which did not harm the interests of the Company and other shareholders of the Company.The content of related transactions was fully timely and accurately disclosed which did not have negative
influence on the Company.
2. Complete assets
The relationship of the Company's property right is clear. The assets injected by shareholders in the
Company are independent and complete and have clear property right. All capital was paid up and relevant
formalities of property right change were settled.
3. Independent personnel
352023 Annual Report
As for personnel relationship the general manager deputy general managers the secretary to the board of
directors and financial controller of the Company were full-time employees and received salary from the
Company who did not concurrently hold positions at the parent company.All directors and supervisors of the Company were elected through legal procedure. The general manager
deputy general managers chief accountant chief economic engineer and chief engineer were directly appointed
by the board of directors. Other managerial personnel of all levels were directly appointed by the general
manager. The Company owns independent power of personnel appointment and removal.
4. Independent finance
The Company including subsidiaries established independent accounting department ， independentaccounting system and regulations on financial management.The Company independently opened bank account and did not deposit funds in the accounts of the finance
company or settlement center of the majority shareholder. The Company independently paid tax. The
Company's financial decisions were independently made. The majority shareholder did not interfere with the
use of funds by listed companies.
5. Independent organization
The board of directors the supervisory committee and other internal organs of the Company operated
independently. Its organs are complete and independent.III. Horizontal Competitions
□ Applicable √ Not applicable
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Reporting Period
1.Annual General Meeting
Investor
Type of Meeting Disclosure
Sessions participation Disclosure index
meeting Date date
ratio
The meeting examined the Proposal Concerning
Final Accounting Report for 2022 The meeting
examined the Proposal Concerning plan for
Profit Distribution for 2022 The meeting
examined the Proposal Concerning Overall
budget report of the Company for 2023 The
meeting examined the Work Report of the Board
Annual of Directors for 2022 The meeting examined the
2022
Shareholders’ Work Report of the supervisory Committee for
Shareholders’ June June66.79%
General 282023 292023 2022 The meeting examined Annual Report for
general meeting
Meeting 2022 and its summary The meeting examined
the Proposal for Hiring the 2023 Annual
Financial Report Audit Agency The meeting
examined the Proposal for Hiring the 2023
Internal Control Audit Institution The meeting
examined the Proposal on the Investment Plan
for 2023; The meeting examined the Proposal
on Amending Part of the Articles of Association
362023 Annual Report
of the Company.The First
Provisional The meeting examined the Proposal
provisional
shareholders’ August August on change of the performance commitment ofshareholders’ 64.41%
General 232023 242023 the major asset restructuring project in 2020 and
General meeting signing the supplementary agreement to the
meeting
of 2023 profit compensation agreement
The Second The meeting examined the Proposal
Provisional
provisional on Increasing Capital to Zhaoqing Yuezhao
shareholders’
shareholders’ November November40.71% Highway Co. Ltd. to Invest in the
General 62023 72023 Reconstruction and Expansion Project of the
General meeting
meeting Yuejing Hengjiang to Ma'an Section of the G80
of 2023 Guangzhou-Kunming Expressway
The meeting examined the Proposal
on Amending the Independent Director System
of the Company The meeting examined the
Proposal on Amending the Articles of
The Third
Provisional Association of the Company The meeting
provisional
shareholders’ December December examined the Proposal on Renewal of theshareholders’ 65.27%
General 52023 62023 Financial Services Agreement with Guangdong
General meeting
meeting Communications Group Finance Co. Ltd. The
of 2023
meeting examined the Proposal
on the election of Mr. Zhang Renshou and Mr.Liu Heng as independent directors of the 10th
board of directors of the Company
2. Request for extraordinary general meeting by preferred stockholders whose voting rights restore
□ Applicable √Not applicable
372023 Annual Report
V. Information about Directors Supervisors and Senior Executives
1.Basic situation
Reasons
Number of
The number Number of for
shares
Office Starting date Expiry date of Shares held of shares held Other shares held at increase
Name Positions Sex Age at the year- reduced in the
status of tenure tenure begin(share) in the current changes(shares) the end of the orcurrent
period(shares) period(shares) decrease
period(shares)
of shares
Miao Board In office Male August September52
Deshan Chairman 192022 202025
Director
Wang General In office Male September59 April 162013 135100 135100
Chunhua 202025
Manager
Director
Chief In office Male December SeptemberLu Ming 45
252020202025
accountant
Director
Deputy October September
Zuo Jiang In office Female 51
General 192015 202025
Manager
Cheng Director In office Male September September49
Rui 202022 202025
Zeng Director In office Male December September53
Zhijun 42017 202025
Yao Director In office Male November September56
Xuechang 22020 202025
Yao Director In office Male September September52
Xuechang 202022 202025
November September
Wu Hao Director In office Female 51
22020202025
Kuang Director In office Male September38 May 172022
Yu 202025
382023 Annual Report
Reasons
Number of
The number Number of for
shares
Office Starting date Expiry date of Shares held of shares held Other shares held at increase
Name Positions Sex Age at the year- reduced in the
status of tenure tenure begin(share) in the current changes(shares) the end of the orcurrent
period(shares) period(shares) decrease
period(shares)
of shares
Zeng Independent In office Female September54 May 202019
Xiaoqing director 202025
You Independent In office Male September September55
Dewei director 202022 202025
Yu Independent In office Male September September61
Mingyuan director 202022 202025
Zhang Independent In office Male December September58
Renshou director 52023 202025
Independent
In office Male December SeptemberLiu Heng 40
director 52023 202025
Chairman of
the
In office Male August SeptemberHe Sen 50
Supervisory 192022 202025
Committee
Wang Supervisor In office Female September52 May 172022
Xiaobing 202025
Ke Lin Supervisor In office Female
September September
54
152017202025
Deng Supervisor In office Male December September48
Yunfeng 232021 202025
Zhou Supervisor In office Female September September53
Dong 92022 202025
Deputy
Luo General In office Male December September50
Baoguo 252020 202025
Manager
Zhu Deputy In office Male 41 April 272023 September
392023 Annual Report
Reasons
Number of
The number Number of for
shares
Office Starting date Expiry date of Shares held of shares held Other shares held at increase
Name Positions Sex Age at the year- reduced in the
status of tenure tenure begin(share) in the current changes(shares) the end of the orcurrent
period(shares) period(shares) decrease
period(shares)
of shares
Qijun General 202025
Manager
Yang Secretary to In office Male August September54
Hanming the Board 282017 202025
Zhou legal counsel In office September SeptemberMale 43
Yisan 202022 202025
Zhang Independent Dimission Male December December58
Hua director 42017 42023
Liu Independent Dimission Male December December58
Zhonghua director 42017 42023
Total -- -- -- -- -- -- 135100 0 0 0 135100 --
During the reporting period whether there is dismissal of directors and supervisors and decruitment of senior managers
□Yes□No
Changes of directors supervisors and senior executives
√ Applicable □ Not applicable
Name Positions Types Date Reason
Liu Zhonghua Independent director Dimission December 42023 Left for term expiration
Zhang Hua Independent director Dimission December 42023 Left for term expiration
402023 Annual Report
2.Posts holding
Professional backgrounds major work experience and current duties in the Company of the incumbent directors
supervisors and senior management:
Mr. Miao Deshan，He served as Chairman with bachelor degree. Bachelor of Engineering degree seniorengineer. From June 2011 to July 2022 he served successively as Deputy General Manager Chief Engineer
Deputy Secretary of the Party Committee Director and General Manager of Guangdong Communications
Industrial Investment Co. Ltd. has been the Chairman of the Company since August 19 2022. He is also the
Director of SPIC Yuetong Qiyuanxin Power Technology Co. Ltd. the Company's shareholding company and the
Legal Representative and Executive Director of Yuegao Capital Holdings (Guangzhou) Co. Ltd.Mr. Wang Chunhua He served as Director and General Manager of the Company Master Degree senior engineer
and senior economic engineer Since September 2006 he served as Deputy General Manager of the
Company.From March 2013 to October 2015 He served as director and Deputy General Manager of the
Company Since October 2015 He served as Director and General director of the Company and hold a concurrent
post of vice chairman of Shenzhen Huiyan Expressway Co. Ltd. and Chairman and Legal representative of
Guangfo Expressway .Mr. Lu Ming He served as Director and Chief accountant of the Company Graduate degree
MBA senior accountant from March 2009 to December 2020 served as the Manager Deputy Business
Director and Business Director of the Financial Management Department of Guangdong Communications Group
Co. Ltd. and from December 2018 to December 2019 he served as the first secretary of the Party Branch of
Yinghuai Management Office of Guangdong Nanyue Communications Longhuai Expressway Management
Center. Since December 25 2020 he has served as the Chief Accountant of the Company and since February 3
2021 he has served as a Director of the Company. He also serves as the Vice Chairman of Ganzhou Nankang–
Dayu Expressway Co. Ltd. the Company's shareholding company the Director of Guangdong Yueke Science
and Technology Microfinance Co. Ltd. the Chairman of Beijing-Zhuhai Expressway Guangzhou-Zhuhai Section
Co. Ltd. and Guangdong Guangzhou-Huizhou Expressway Co. Ltd.Ms. Zuo Jiang Deputy General Manager of the Company Graduate degree ，Master of Economics SeniorEconomist Qualified as Legal Adviser of the Enterprise Secretary of the Board of Directors. He has been
working in the Company since 1994. He has been the Minister of Securities Affairs of the Company since 1999.He has been the Secretary of the Board of Directors and Director of Securities Affairs Department since March
2006. From October 2015 to July 2016 he was the Deputy General Manager and Secretary of the Board of
Directors And Minister of Securities Affairs. Since October 2015 he has been the Deputy General Manager of the
Company and hold a concurrent post of Director of Guangdong Yueke Science and Technology Microfinance
Co. Ltd. director of Guoyuan Securities Co. Ltd. and General Manager Party branch secretary of Yuegao
Capital lnvestment (Guangzhou)Co. Ltd.Mr. Cheng Rui Director of the Company holds a master's degree in business administration an economist
with the Corporate Legal Adviser and Lawyer qualification.From August 2017 to May 2022 he served as Deputy
General Manager of Guangdong Expressway Development Co. Ltd. during which from May 2019 to August
2021 he was appointed as the First Secretary of the Party Organization in Shanhu Village Jinhe Town Jiexi
County Jieyang City.Since May 2022 till now he has served as the Director of Legal Affairs Department of
Guangdong Communications Group Co. Ltd. He has been the director of the Company since September 20 2022.Mr. Zeng Zhijun economist is a director of the Company with master degree. Since June 2010 he has served
as the deputy chief economist of Guangdong Provincial Expressway Co. Ltd. From January 2015 to September
2015 he served as Minister of Investment Planning Department of Guangdong Provincial Expressway Co. Ltd;
412023 Annual Report
since September 2015 he has served as Minister of Legal Affairs Department of Guangdong Provincial
Expressway Co. Ltd. ，Since September 2020 He serves as Minister of personnel resource department，SinceDecember 4 2017 he serves as Director of the Company.Mr.You Xiaocong senior accountantis the director of the Company with bachelor degree. From May 2015
to December 2021 he served as the director and chief accountant of Guangdong Provincial Highway Construction
Co. Ltd. and since December 2021 he has served as the director chief accountant and member of the party
committee of Guangdong Provincial Highway Construction Co. Ltd. He has served as director of the Company
since November 2 2020.Mr. Yao Xuechang Director of the Company Bachelor Degree MBA Senior Engineer of road and bridge
served as the Director and Deputy Secretary of the Party Branch of the Reconstruction and Expansion Project
Management Office of the Southern Section of Foshan-Kaiping Expressway from October 2015 to February 2020.From February 2020 to October 2021 he successively served as the Director and Deputy Secretary of the Party
Branch of Zhongshan-Jiangmen Expressway Reconstruction and Expansion Management Office Deputy
Secretary and Director of the Party Branch of the Reconstruction and Expansion Project Management Office of
the Southern Section of Foshan-Kaiping Expressway director and deputy secretary of the Party branch of the
Guangzhou-Zhuhai Expressway Reconstruction and Expansion Management Office. Since October 2021 he has
served as the Deputy Secretary and Director of the Party Branch of the Reconstruction and Expansion
Management Office of the Guangzhou-Zhuhai section of Beijing-Zhuhai Expressway and the Director of the
Reconstruction and Expansion Project Management Office of the Southern Section of Foshan-Kaiping
Expressway.He has been the Director of the Company since September 20 2022.Ms.Wu HaoShe is the director of the Companywith bachelor degree. From February 2012 to May 2020 She
successively served as deputy manager of the finance department deputy manager of the investment business
department and manager of the investment business department of Shandong Expressway Investment
Development Co. Ltd. She has served as the deputy general manager and member of party committee of
Shandong Expressway Investment Development Co. Ltdsince May 2020. From November 2 2020 he has served
as director of the Company.Mr Kuang Yu Director of the Company holds a master's degree in economics.He started working in 2011
and is currently the securities affairs representative of Poly Development Holding Group Co. Ltd. and the
Department Manager of the Capital Operation Department of the Board Office.He has been the Director of the
Company since May 17 2022.Ms. Zeng Xiaoqing an independent director of the Company with bachelor's master's and doctor's degrees
from Tongji University. Since 1993 she conducted training and study at Tsinghua University and German
Darmstadt University of Technology. From May 20 2019 she served as the independent director of the Company.Mr. You Dewei the independent director of the Company with a master's degree in law served as the Senior
Partner and Lawyer of Guangdong Zongheng Tianzheng Law Firm from June 1997 to January 2019 and as the
Supervisor Senior Partner and Lawyer of Guangdong ETR Law Firm since January 2019. Meanwhile he is also a
part-time External Director of the supervision enterprise of Guangdong State-owned Assets Supervision and
Administration Commission part-time External Director of Guangdong Port and Shipping Group Independent
Director of Guangzhou Academy of Building Research Co. Ltd. Independent Director of Guangsheng
Nonferrous Metals Co. Ltd. and one of the first batch of 35 mediators in the Mediation Center of Guangdong
Lawyers Association Deputy Director of the 11th State-owned Assets Law Committee of Guangdong Lawyers
Association Deputy Director of the 12th Compliance and Risk Control Law Committee of Guangdong Lawyers
Association Executive Director of China Health Law Society Executive Director of Guangdong Health Law
Society Director of Guangdong Law Society's Corporate Compliance Research Society Director of Guangdong
422023 Annual Report
Law Society's Medicine and Food Law Research Society Deputy Director of Guangzhou Lawyers Association's
Medicine and Health Business Legal Committee an Arbitrator of Shenzhen Court of International Arbitration
Arbitrator of Qingyuan Arbitration Committee Member of Guangdong Province's Eighth Five-Year Plan Law
Popularization Lecturer Group and Member of Guangzhou Municipal Bureau of Justice's "Warm Enterprise
Action" 100-expert Lawyer Legal Service Group. He has been an independent director of the Company since
September 20 2022.Mr. Yu Mingyuan an Independent Director of the Company Bachelor of Engineering second-class
researcher and Expert enjoying special government allowance from the State Council once served as the Director
of the Highway and Comprehensive Transportation Development Research Center of the Research Institute of
Highway Ministry of Transport. Since July 2021 he has also served as an Independent Director of Jiangsu
Shanghai-Nanjing Expressway Co. Ltd. since December 2022 as an Independent Director of Hubei Chutian
Intelligent Transportation Co. Ltd. and since September 20 2022 as an Independent Director of the Company.Mr. Zhang Renshou is an independent director of the Company. He is a doctoral supervisor a postdoctoral
cooperative supervisor an MPACC master's supervisor and an MBA supervisor. He used to be the dean of the
College of Modern Industry of Guangzhou University and the dean of the Sino-Canadian School of International
Education of Guangzhou University. He is currently a professor of the Department of Accounting of School of
Management of Guangzhou University the dean of the Institute of Performance and Strategic Management of
Guangzhou University the dean of the South China Institute of Big Data in the Guangdong-Hong Kong-Macao
Greater Bay Area and the deputy dean of the Guangdong New Era Career Development Research Institute. He
has been an independent director of the Company since December 5 2023.Mr. Liu Heng Ph.D. doctoral supervisor project expert of the National Foundation and Provincial
Department of Science and Technology is strategic consultant of many enterprises etc. From June 2015 to June
2023 he served as an associate professor at Sun Yat-sen University and since June 2023 he has been a professor
at Sun Yat-sen University. Since August 2022 he has served as an independent director of Guangdong Zhaoqing
Xinghu Biotechnology Co. Ltd. He has been an independent director of the Company since December 5 2023.Mr. He Sen Chairman of the Board of Supervisors of the Company Bachelor Degree MBA Senior
Accountant has been appointed Chairman of the Board of Supervisors of Guangdong Communications Group Co.Ltd. since March 2016. Since August 19 2022 he has served as Chairman of the Board of Supervisors of the
Company.Ms. Wang Xiaobing Supervisor of the Company Bachelor of Arts Senior Economist and Accountant has
been an expatriate supervisor of Guangdong Communications Group Co. Ltd. since August 2008. Since May 17
2022 he has served as a Supervisor of the Board of Supervisors of the Company.
Ms.Ke Lin Supervisor of the Company bachelor degree Bachelor of Science assistant researcher.From August
2017 to December 2020 she has served as Chairman of the labor union of the companyFrom August to New
She has served as party committee member discipline inspection commission secretary.Since September 15 2017
She served as supervisor of Board of supervisor of the Company.Mr. Deng Yunfeng supervisor of the Company bachelor degree MBA senior engineer. He served as Party
Secretary of Guangzhou-Foshan Expressway Co. Ltd. from February 2014 to July 2018; Minister of Party and
Mass Work Department of the Company from July 2018 to the present and also vice chairman of the trade union
of the Company and chairman of the trade union of its headquarters from March 2021 to the present. He has
served as the employee supervisor of the ninth board of supervisors of the Company since December 23 2021.
432023 Annual Report
Ms. Zhou Dong Supervisor of the Company Bachelor of Economics and Senior Accountant. From April
2003 to January 2018 she served as Deputy Director of the Financial Management Department of the Company.
Since January 2018 she has served as Deputy Secretary of the Discipline Inspection Committee of the
Company and Director of the Discipline Inspection and Audit Department of the Company. Since September
2022 She has served as Employee Supervisor of the Board of Supervisors of the Company.She is also the
Chairman of the Board of Supervisors of Ganzhou Gankang Expressway Co. Ltd. a shareholding company of
the Company Supervisor of Guangdong Lechang-Guangzhou Expressway Co. Ltd. and Supervisor of
Shenzhen Huizhou-Shenzhen Expressway Co. Ltd.and Yuegao Capital Holdings (Guangzhou) Co. Ltd.Mr. Luo Baoguo Deputy General Manager of the Company Master of Engineering Senior Engineer. From
August 2017 to December 2020 he served as the General Manager (person in charge) and Deputy Secretary of
the Party Committee of Foshan-Kaiping Branch of Guangdong Expressway Development Co. Ltd. Since
December 25 2020 he has served as the Deputy General Manager of the Company.He is also the Chairman of
Zhaoqing Yuezhao Highway Co. Ltd. a shareholding company of the Company the Vice Chairman of
Guangdong Zhongshan–Jiangmen Expressway Co. Ltd. and the Director of Guangdong Guangzhou-Huizhou
Expressway Co. Ltd.Mr. Zhu Qijun Deputy General Manager of the Company holds a master's degree in arts and is a political
engineer. From August 2016 to February 2022 he successively served as the secretary of the Party branch the
deputy general manager and the chairman of the labor union of the commercial operation and management
branch of Guangdong Litong Real Estate Investment Co. Ltd. (after upgrading) during which he concurrently
served as the deputy general manager of Guangdong Gaoda Property Development Co. Ltd. and the deputy
general manager of Guangdong Litong Property Development Co. Ltd. From February 2022 to May 2022 he
served as the director of the planning and marketing center of Guangdong Litong Development and Investment
Co. Ltd. From May 2022 to March 2023 he served as the director of the business planning department of
Guangdong Urban Transportation Investment Co. Ltd. and Guangdong Litong Development and Investment
Co. Ltd. and concurrently served as a director of Guangdong Traffic Engineering Co. Ltd. during the period.He has been the Deputy General Manager of the Company since April 27 2023.Mr. Zhou Yisan General Counsel of the Company Master of Law corporate lawyer second-class legal
adviser of state-owned enterprises has the qualifications of secretary of the board of directors securities
futures and funds. From April 2016 to October 2017 he served as Deputy Director of Investment Development
Department and Legal Affairs Department of the Company; from October 2017 to now he served as Director of
Legal Affairs of the Company; from September 2019 to September 2022 he served as Employee Supervisor of
the Ninth Board of Supervisors of the Company; and from September 20 2022 he served as General Counsel
of the Company. Meanwhile he also serves as the Director of Beijing-Zhuhai Expressway Guangzhou-Zhuhai
Section Co. Ltd. the holding company of the Company Supervisor of Guangdong Yueke Science and
Technology Microfinance Co. Ltd. and Director of Guangdong Guangzhou-Huizhou Expressway Co. Ltd.Mr. Yang Hanming he has been the Secretary of the Board， bachelor's degree senior economist corporatelegal adviser with the board secretary qualifications. Since August 2017 he has been the Secretary of the Board
of the Company vice Chairman of Ganzhou Gankang Expressway Co. Ltd. Director of Guangdong Jiangzhong
Expressway Co. ltd. and supervisor of Guangdong Yueke Science and Technology Microfinance Co. Ltd. Since
September 2019 he served as Minister of Development Dept of the Company. He also serves as the vice
Chairman of Gangzhou Gankang Expressway Co. Ltd. a joint stock company of the Company. and Director of
Jingzhu Expressway Guangzhu Section Co. Ltd.Office taking in shareholder companies
√Applicable □Not applicable
442023 Annual Report
Does he /she
Names of Expiry
receive
the Titles engaged in the Sharing date of date of
Names of the shareholders remuneration or
persons shareholders office term office
allowance from
in office term
the shareholder
Cheng Guangdong Communication Minister of Legal Affairs. May 12022 Yes
Rui Group
You Guangdong Communication Deputy Party committee
April 122023 Yes
Xiaocong Group Finance Co. Ltd. member General Manager
Beijing-Zhuhai Expressway
Yao Guangzhou-Zhuhai section Deputy secretary and
October 12021 Yes
Xuechang reconstruction and expansion director
management Office
Zeng Guangdong Provincial General Counsel Minister
September 12015 Yes
Zhijun Freeway Co.Ltd. of Human Resources
Guangdong Communication Dispatched chairman of the
He Sen March 12016 Yes
Group Co. Ltd. supervisory committee
Wang Guangdong Communication
Supervisor August 12008 Yes
Xiaobing Group Co. Ltd.Offices taken in other organizations
√Applicable □Not applicable
Does he/she
receive
Name of Titles engaged in
Starting date of office Expiry date of office remuneration
the persons Name of other organizations the other
term term or allowance
in office organizations
from other
organization
Tongji University's School
Professor and
of Transportation June 12007 Yes
doctoral supervisor
Zeng Engineering
Xiaoqing Tongji University's Joint
Experimental Center for Director June 302003 No
Traffic Information Control
Senior partner
Guangdong ETR Law Firm January 12019 Yes
lawyer
Guangdong ETR Law Firm Chief Supervisor June 12022 June 12023 Yes
Guangdong Province
SASAC supervises External director July 12019 Yes
enterprises
Guangdong Ganghang
External director July 12019 Yes
Group
You Dewei Guangdong Provincial Independent
Academy of Building August 12022 Yes
Research Group Co. Ltd. director
Rising Nonferrous Metals Independent
August 12022 Yes
Share Co. ltd. director
China Southern Airlines Independent
December 12022 Yes
General Aviation Co. Ltd director
Zhuhai Rural Commercial Executive June 12023 Yes
452023 Annual Report
Does he/she
receive
Name of Titles engaged in
Starting date of office Expiry date of office remuneration
the persons Name of other organizations the other
term term or allowance
in office organizations
from other
organization
Bank Co. Ltd supervisor
The Council of the Health
Law Research Association of
Vice chairman May 12023 No
the Guangdong Provincial
Law Society
Guangdong Enterprise
Federation Guangdong Vice chairman March 12023 No
Entrepreneurs Association
The 11th State-owned Assets
Law Professional Committee
Vice director March 12017 No
of Guangdong Lawyers
Association
The 12th Compliance Risk
Control Legal Professional
Vice director April 12022 No
Committee of Guangdong
Lawyers Association
China Health Law Society Executive director June 12019 No
Guangdong Health Law
Executive director December 12021 No
Society
Guangdong Provincial Law
Society of Medicine and
Director December 12020 No
Food Law Research
Associatio
Pharmaceutical and Health
Business Legal Professional
Vice director September 12020 No
Committee of Guangzhou
Law Association
Shenzhen Court of
Arbitrator February 12019 No
International Arbitration
Qingyuan Arbitration
Arbitrator February 12016 No
Commission
Guangzhou Municipal
Bureau of Justice "warm
Member September 12016 No
enterprise action" 100
experts lawyers legal service
Research Institute of
Second-level
Highway Ministry of October 12022 Yes
researcher
Transport
China Highway Society
Executive director July 12022 No
Investment Branch
China Highway
Yu SocietyTransportation and Executive director July 12018 No
Mingyuan Logistic Branch
Jiangsu Ninghu Expressway Independent
July 12021 Yes
Co. Ltd. director
Hubei Chutian Smart Independent
December 12022 Yes
Communication Co. Ltd. director
Liu Heng Guangdong Zhaoqing Independent August 12022 Yes
462023 Annual Report
Does he/she
receive
Name of Titles engaged in
Starting date of office Expiry date of office remuneration
the persons Name of other organizations the other
term term or allowance
in office organizations
from other
organization
Xinghu Biotechnology Co. director
Ltd
Shandong Expressway Member of Party
Wu Hao Investment Development committee deputy May 292020 Yes
Co. Ltd. general manager
Securities
Representative and
Department
Poly Development Group
Kuang Yu Manager of Yes
Co. Ltd.Capital Operations
Department of the
Board of Directors
Punishments to the current and leaving board directors supervisors and senior managers during the report
period by securities regulators in the recent three years
□ Applicable √Not applicable
3. Remuneration to directors supervisors and senior executives
Decision-making procedures basis for determination and actual payment of the remuneration to directors
supervisors and senior executives
The remuneration of members of the Tenth board of directors and supervisory committee was examined
and determined at the second provisional shareholders’ general meeting in 2022.Non-independent directors are not entitled to directors' remuneration.
1. Independent directors are entitled to directors' remuneration，Directors who have not held other positions in
the Company and the controlling shareholder of the Company and its related parties are remunerated by the
directors of the Company and the standard is RMB 8000 (tax included) per person per month. In addition the
expenses incurred by the independent directors at the board of directors and the shareholders' general meeting
and the expenses incurred in exercising their functions and powers in accordance with the articles of association
may be reimbursed in the company.Remuneration to directors supervisors and senior executives in the reporting period
In RMB 10000
Office Total remuneration received Whether to get paid in the
Name Positions Sex Age
status from the Company company related party
Miao Deshan Board Chairman Male 52 In Office 66.71 No
Wang Director General
Male 59 In Office 73.25 No
Chunhua Manager
Director Chief
Lu Ming Male 45 In Office 61.86 No
Accountant
Director Deputy
Zuo Jiang Female 51 In Office 61.74 No
General Manager
Cheng Rui Director Male 49 In Office 5.98 Yes
Zeng Zhijun Director Male 53 In Office Yes
472023 Annual Report
Office Total remuneration received Whether to get paid in the
Name Positions Sex Age
status from the Company company related party
You Xiaocong Director Male 56 In Office Yes
Yao Xuechang Director Male 52 In Office Yes
Wu Hao Director Female 51 In Office Yes
Kuang Yu Director Male 38 In Office No
Independent
Zeng Xiaoqing Female 54 In Office 9.6 No
director
Independent
You Dewei Male 55 In Office 9.6 No
director
Independent
Yu Mingyuan Male 61 In Office 9.6 No
director
Zhang Independent Male 58 In Office 0.8 No
Renshou director
Independent
Liu Heng Male 40 In Office 0.8 No
director
Chairman of the
He Sen Supervisory Male 50 In Office Yes
Committee
Wang
Supervisor Female 52 In Office Yes
Xiaobing
Ke Lin Supervisor Female 54 In Office 60.88 No
Deng Yunfeng Supervisor Male 48 In Office 58.08 No
Zhou Dong Supervisor Female 53 In Office 58.19 No
Deputy General
Luo Baoguo Male 50 In Office 60.93 No
Manager
Deputy General
Zhu Qijun Male 41 In Office 41.84 No
Manager
Chief legal
Zhou Yisan Male 43 In Office 61.32 No
adviser
Secretary to the
Yang Hanming Male 54 In Office 60.15 No
Board
Independent
Zhang Hua Male 58 Dimission 8.8 No
director
Independent
Liu Zhonghua Male 58 Dimission 8.8 No
director
Total -- -- -- -- 718.92 --
Other
□Applicable□Not applicable
482023 Annual Report
VI. Performance of directors' duties during the reporting period
1. Information of the board meetings during the reporting period
Session Convening date Disclosure date Meeting resolution
The meeting examined and adopted of the Proposal on Changes in Accounting Policies The
meeting examined and adopted the Proposal Concerning Final Accounting Report for 2022
The meeting examined and adopted the Proposal Concerning Preplan for Profit Distribution for
2022 The meeting examined and adopted the Proposal Concerning Overall budget report of the
Company for 2023 The meeting examined and adopted the Work Report of the Board of
Directors for 2022 The meeting examined and adopted the Business Report of the General
Manager for 2022 .The meeting examined and adopted Annual Report for 2022 and its
summary The meeting examined and adopted the Proposal the report on evaluation of the
Company's internal control in 2022 The meeting examined and adopted the Proposal for
Hiring the 2023 Annual Financial Report Audit Agency The meeting examined and adopted
the Proposal for Hiring the 2023 Internal Control Audit Institution The meeting Examined and
adopted of the Proposal on Confirming the Continuous Risk Assessment Report of Guangdong
The 7th (Provisional) meeting of the Tenth
March 202023 March 212023 Communication Group Finance Co. Ltd. The meeting Examined and adopted of the Proposal
Board of Directors
on the Report on the Control of Debt Risk of 2022
The meeting Examined and adopted of the Proposal on the Report on the analysis of Debt Risk
of 2022 The meeting Examined and adopted of the Proposal on the 2022 Environmental
Social and Governance (ESG) Report of the Company The meeting examined and adopted the
Proposal on Signing the Office Property Lease Contract of the 45th and the 46th Floors of
Litong Plaza
The meeting examined and adopted the Proposal on the Difference between Actual Profit and
Profit Forecast of Guanghui Expressway The meeting examined and adopted the Proposal on
Deliberating the 2023 Management Target Responsibility Letter for Members of the
Company's Management Level The meeting examined and adopted the Proposal on the 2022
Gross Salary Distribution Plan of the Company The meeting examined and adopted the
Proposal on the 2022 Gross Salary Distribution Results of the Company's Leadership Team.The 8th (Provisional) meeting of the Tenth
April 272023 April 282023 The meeting examined and adopted the Proposal concerning the First Quarter of 2023 The
Board of Directors
492023 Annual Report
Session Convening date Disclosure date Meeting resolution
meeting examined and adopted the Proposal on Amending the Articles of Association The
meeting examined and adopted the Proposal on Appointing the Deputy General Manager of the
Company.The 9th (Provisional) meeting of the Tenth The meeting examined and adopted the Proposal for Holding 2022 Shareholders' General
June 72023 June 82023
Board of Directors Meeting.
1.The meeting examined and adopted the Proposal on change of the performance commitment
The 10th (Provisional) meeting of the Tenth of the major asset restructuring project in 2020 and signing the supplementary agreement to the
August 72023 August 82023
Board of Directors profit compensation agreement The meeting examined and adopted the Proposal for Holding
2023 First Provisional Shareholders' General Meeting
The meeting examined and adopted the Proposal for semi-annual report 2023 and its summary
The meeting examined and adopted the Proposal on Confirming the Continuous Risk
Assessment Report of Guangdong Communication Group Finance Co. Ltd. The meeting
The 11th (Provisional) meeting of the Tenth
August 282023 August 292023 examined and adopted the Proposal on signing the "Two letters and letters and one contract" of
Board of Directors
Deputy General Manager Zhu Qijun The meeting examined and adopted the Proposal on
changing the assessment indicators of the "Annual and term management target responsibility
letter" of some management members of 2023
The meeting examined and adopted the proposal "On the public transfer of Garage Electric Pile
Holding(Shenzhen) Co. Ltd.by Yuegao Capital" The meeting examined and adopted the
The 12th (Provisional) meeting of the Tenth
September 262023 September 272023 "Proposal on the Establishment of Garage Electric Pile Holding(Shenzhen) Co. Ltd. by
Board of Directors
Participating in Equity Investment"
The meeting examined and adopted the "Proposal on Increasing Capital to Zhaoqing Yuezhao
Highway Co. Ltd. to Invest in the Reconstruction and Expansion Project of the Yuejing
The 13th (Provisional) meeting of the Tenth
October 20 October 212023 Hengjiang to Ma'an Section of the G80 Guangzhou-Kunming Expressway" The meeting
Board of Directors
examined and adopted the Proposal for Holding 2023 Second Provisional Shareholders'
General Meeting
The 14th (Provisional) meeting of the Tenth
October 272023 October 282023 The meeting examined and adopted the Proposal concerning the Third Quarter of 2023
Board of Directors
502023 Annual Report
Session Convening date Disclosure date Meeting resolution
The meeting examined and adopted the "Proposal on Amending the Articles of Association ofthe Company”The meeting examined and adopted the "Proposal on Amending the Independent
Director System of the Company" The meeting examined and adopted the "Proposal on
Renewal of the Financial Services Agreement with Guangdong Communications Group
Finance Co. Ltd". The meeting examined and adopted the "Proposal on Writing off the
The 15th (Provisional) meeting of the Tenth
November 272023 November 182023 Creditor's Rights of Kunlun Securities Co. Ltd. Held by the Company".The meeting examined
Board of Directors
and adopted the "Proposal on Adding the Candidates for Independent Directors of the 10th
Board of Directors" The meeting examined and adopted the "Proposal on Reviewing the
Contractual Assessment Results of the Tenure System of the Company's Managers in 2022"
The meeting examined and adopted the Proposal for Holding 2023 Third Provisional
Shareholders' General Meeting.The meeting examined and adopted the Proposal on the By-election of Member of the Audit
Committee of the 10th Board of Directors The meeting examined and adopted the Proposal on
the By-election of Member of the Strategy Committee of the 10th Board of Directors The
meeting examined and adopted the Proposal on the By-election of Members of the
Remuneration and Assessment Committee of the 10th Board of Directors The meeting
examined and adopted the Proposal on By-election of Members of the Risk Management
The 16th (Provisional) meeting of the Tenth Committee of the 10th Board of Directors" The meeting examined and adopted the Proposal
December 262023 December 272023
Board of Directors on the Mid-term Assessment and Optimization and Adjustment Report on the Implementation
of the 14th Five-Year Plan of the Guangdong Expressway The meeting examined and adopted
the Proposal on the Guangdong Expressway 2023 Total Salary Budget Allocation Plan The
meeting examined and adopted the Proposal on the Scrapping and Disposal of Part of Fixed
Assets of Fokai Branch Company of Guangdong Provincial Expressway Development Co.Ltd. The meeting examined and adopted the Proposal on Amendment to Measures for the
Management of Internal Audit of Guangdong Provincial Expressway Development Co. Ltd.
512023 Annual Report
2. Attendance of directors at the board meetings and the general meeting of shareholders
Attendance of directors at the board meetings and the general meeting of shareholders
Number of Number of
Whether to
board Number of board Number of
Number of attend the General
meetings board meetings board
Name of board board meetings of
attended meetings attended by meetings
director meetings meeting in shareholders
during the attended in means of attended by
absent from person twice attended
reporting person communicati proxy
in a row
period on
Miao Deshan 10 5 5 0 0 No 4
Wang
10 2 8 0 0 No 4
Chunhua
Lu Ming 10 6 4 0 0 No 4
Zuo Jiang 10 5 5 0 0 No 4
Cheng Rui 10 6 4 0 0 No 4
Zeng Zhijun 10 1 9 0 0 No 4
You
10 5 5 0 0 No 4
Xiaocong
Yao
10 1 9 0 0 No 4
Xuechang
Wu Hao 10 0 10 0 0 No 4
Kuang Yu 10 1 9 0 0 No 4
Zeng
10 0 10 0 0 No 4
Xiaoqing
You Dewei 10 2 8 0 0 No 4
Yu
10 2 8 0 0 No 4
Mingyuan
Zhang
1 1 0 0 0 No 1
Renshou
Liu Heng 1 1 0 0 0 No 1
Liu
9 0 9 0 0 No 3
Zhonghua
Zhang Hua 9 1 8 0 0 No 3
Explanation of failure to attend the board meeting in person twice in a row
None
3. Directors' objections to related matters of the Company
Whether the director raises any objection to the relevant matters of the Company
□ Yes √ No
During the reporting period the directors did not raise any objection to the relevant matters of the Company.
4. Other descriptions of directors' performance of duties
Whether the directors' suggestions on the Company have been adopted
√Yes □ No
The director's statement on whether the relevant suggestions of the Company have been adopted or not
During the reporting period all the directors of the Company diligently performed the duties entrusted by the
general meeting of shareholders carefully evaluated and considered the Company's operation management
investment corporate governance and other matters actively proposed scientifically discussed and collectively
522023 Annual Report
made decisions in the board meeting and put forward multiple suggestions that meet the Company's development
needs at the present stage which were adopted by the Company in the form of resolutions of the Board of
Directors.
532023 Annual Report
VII. Situation of special committees under the Board of Directors during the reporting period
Number Other
Details of
Committee Member of Convening information
Meeting content Put forward important opinions and suggestions objections
name information meetings date of duty
(if any)
convened performance
The Audit Committee reviewed the 2022 financial report
prepared by the Company and reached consensus: 1. The
1. Reviewed the 2022 financial report
Chairman of Company's accounting policies were properly selected
prepared by the Company; 2. Certified
the committee: accounting estimates were reasonable and no material
Public Accountant Huang Zhiyan
Audit Liu Zhonghua January misstatement or omission was found; 2. No major
1 reported the audit plan of the 2022
Committee Member: 122023 shareholders were found occupying the Company's funds;
financial report to the Audit
Zhang Hua Lu 3. No external violation guarantee or abnormal related party
Committee.Ming transactions were found; 4. The Company's financial
statements could be submitted to the CPA firm for annual
audit.
1. Reviewed the 2022 annual financial 1. The Audit Committee reviewed the 2022 financial report
report submitted by the Company's submitted by the Company's Finance Department and
Finance Department and issued by
certified public accountants with issued by the certified public accountant for annual review
preliminary audit opinions; 2. with preliminary audit opinions and reached consensus as
Reviewed and approved the Proposal follows: (1) The audit of the Company's 2022 financial
on Reviewing the 2022 Internal
Control Evaluation Report of report by the certified public accountant for annual review
Chairman of Guangdong Expressway Development was conducted in strict accordance with the relevant norms
the committee: Co. Ltd.；3. Listened to the reports of of audit business;
Audit Liu Zhonghua March the Proposal on Hiring Financial
1 (2) During preparation of the annual report the annual
Committee Member: 72023 Report Audit Institution in 2023 and
Zhang Hua Lu the Proposal on Hiring Internal certified public accountants communicated with the Audit
Ming Control Audit Institution in 2023 and Committee effectively and fully listened to the opinions of
reviewed relevant information; 4. the Audit Committee and consensus was reached on all
Reviewed and approved the
Company's 2022 Internal Audit Work major aspects in the annual review; (3) The annual financial
Summary and 2023 Internal Audit report issued by certified public accountants with
Work Plan; 5. Reviewed and approved preliminary audit opinions was relatively complete with no
the Proposal on Reviewing the
Company's 2023 Internal Control major omissions and it fairly reflected the Company's
Evaluation Work Plan financial position as of December 31 2022 and the
542023 Annual Report
Number Other
Details of
Committee Member of Convening information
Meeting content Put forward important opinions and suggestions objections
name information meetings date of duty
(if any)
convened performance
production and operation results and cash flow in 2022 in
all major aspects. 2. The Audit Committee has listened to
the report of the Proposal on Deliberating the "Evaluation
Report for Internal Control of Guangdong Expressway
Development Co. Ltd. in 2023" submitted by the Discipline
Inspection and Audit Department of the Company and the
certified public accountant has also issued a preliminary
audit opinion on the internal control of the Company in
2023. The certified public accountant believed that
Guangdong Expressway maintained effective internal
control of financial reports in all major aspects on
December 31 2022 in accordance with the Basic Standards
for Internal Control of Enterprises and relevant regulations.The Audit Committee deliberated and approved the
Evaluation Report for Internal Control of Guangdong
Expressway Development Co. Ltd. in 2022 and agreed to
submit the proposal to the Board of Directors for
deliberation. The Audit Committee listened to the reports
of the Proposal on Hiring Audit Institutions for Financial
Reporting in 2023 and the Proposal on Hiring Audit
Institutions for Internal Control in 2023 and reviewed
relevant materials. It is considered that Yongtuo Certified
Public Accountants LLP (Special General Partnership)
with relevant qualifications to engage in the audit business
of listed companies in accordance with the independent
objective and fair practice standards and with the
552023 Annual Report
Number Other
Details of
Committee Member of Convening information
Meeting content Put forward important opinions and suggestions objections
name information meetings date of duty
(if any)
convened performance
experience and ability to provide audit services for listed
companies can meet the needs of the Company's 2023
annual financial report and internal control audit and can
independently audit the Company's financial status and
therefore it is agreed that the Company will continue to
hire Yongtuo Certified Public Accountants LLP (Special
General Partnership) as the Company's annual financial
report audit institution and internal control audit institution
in 2023 and it is agreed to submit the above two proposals
to the Board of Directors and the General Meeting of
Shareholders for deliberation. 4. It deliberated and approved
the Company's Internal Audit Work Summary in 2022 and
Internal Audit Work Plan in 2023 and agreed to submit the
above proposals to the Board of Directors for deliberation.
5. It deliberated and approved the Proposal on Reviewing
the Company's "Work Plan for Internal Control Evaluation
in 2023" and agreed to the Company's Work Plan for
Internal Control Evaluation in 2023.The Audit Committee reviewed the standard and
unqualified 2022 financial report submitted by the
Chairman of Company's Financial Management Department and issued
It reviewed the standard and
the committee: by the certified public accountant for annual review and
unqualified 2022 financial report
Audit Liu Zhonghua March concluded that the Company's financial report truly
1 submitted by the Company's Financial
Committee Member: 202023 accurately and completely reflected the overall situation of
Management Department and issued
Zhang Hua Lu the Company and agreed to submit the 2022 financial
by the accountant for annual audit
Ming report prepared by the Company and audited by the
certified public accountant for annual review to the Board
of Directors for deliberation.Audit Chairman of 1 August It reviewed the 2023 semi annual The Audit Committee reviewed the 2023 semi annual
562023 Annual Report
Number Other
Details of
Committee Member of Convening information
Meeting content Put forward important opinions and suggestions objections
name information meetings date of duty
(if any)
convened performance
Committee the committee: 232023 financial report and submitted by the financial report and submitted by the Company's
Liu Zhonghua Company's Financial information in Financial Financial information in the annual semiannual
Member: the annual semiannual report of 2023 report of 2023，he three committee members all agreed
Zhang Hua Lu that: accurately and completely reflected the overall
Ming situation of the Company and agreed to submit the 2023
semi annual financial report prepared by the Company and
audited by the certified public accountant for annual review
to the Board of Directors for deliberation.Chairman of
The Committee believed that in 2022 the Company's
the
Remuneration directors and senior management personnel performed their
Committee
and ： March duties diligently and conscientiously and agreed to the
You Dewei， 1 It reviewed the 2022Annual Report.Assessment 202023 remuneration of directors and senior management personnelMember:Zhang
Committee determined by the Company in accordance with relevant
Hua Kuang
systems and regulations in 2022
Yu
Chairman of
Remuneration the Reviewed and approved the "Proposal
The committee deliberated and approved the proposal and
and Committee： December on the 2023 Total Salary Budget1 agreed to submit it to the board of directors of the Company
Assessment You Dewei， 222023 Allocation Plan of Guangdong for consideration.Committee Member: Expressway"
Kuang Yu
Chairman of
the
Committee： The committee unanimously agreed that: the
Miao Deshan
Reviewed the implementation of the implementation of the Company's 2022 development
Strategy Member: March
1 Company's 2022 development strategy strategy and plan and the 2023 Work Plan objectively
Committee Wang 202023
and plan and the 2023 Work Plan. reflects the implementation of the Company's development
Chunhua Yu
plan in 2022.Mingyuan
Zhang Hua
Zeng Xiaoqing
572023 Annual Report
Number Other
Details of
Committee Member of Convening information
Meeting content Put forward important opinions and suggestions objections
name information meetings date of duty
(if any)
convened performance
Chairman of
the
Committee： Reviewed the "Proposal on the Mid- The committee reviewed the proposal on the mid-term
Miao Deshan term Evaluation and Optimization and evaluation and optimization and adjustment report of the
Strategy December
Member: 1 Adjustment Report on the implementation of the 14th Five-Year Plan of the
Committee 222023
Wang Implementation of the 14th Five-Year Guangdong Expressway and agreed to submit it to the
Chunhua Yu Plan of Guangdong Expressway" board of directors of the Company for deliberation.Mingyuan
Zeng Xiaoqing
Chairman of
the Reviewed the 2022 Summary Report
Risk Committee： on Comprehensive Risk Management The committee unanimously agreed that the reportJanuary
Management Liu Zhonghua 1 and Internal Control System of objectively reflects the Company's overall risk and internal182023
Committee Member： Guangdong Expressway Development control management in 2022.Miao Deshan Co. Ltd.You Dewei
Chairman of
the
Committee
Risk ：
Zhang December Reviewed the Proposal on the Results Agreed that the evaluation results objectively reflect the
Management
Renshou 1 262023 of the 2023 Risk Assessment. Company's risk status.Committee
Member Miao
Deshan You
Dewei
Chairman of
the
Committee
Compliance ：
Reviewed the 2022 Compliance
January The report objectively reflects the Company's compliance
You Dewei Management Report of Guangdong
Committee 1 162023 management in 2022.Member：Yu Expressway Development Co. Ltd.Mingyuan Wu
Hao
Chairman of Reviewed the 2023 Compliance
Compliance December The report objectively reflects the Company's compliance
the 1 Management Report of GuangdongCommittee 262023 management in 2023.Committee： Expressway Development Co. Ltd.
582023 Annual Report
Number Other
Details of
Committee Member of Convening information
Meeting content Put forward important opinions and suggestions objections
name information meetings date of duty
(if any)
convened performance
You Dewei
Member：Yu
Mingyuan Wu
Hao
592023 Annual Report
VIII.The working status of the board of supervisors
The board of supervisors finds out whether the company has risks during the monitoring activities during the re
porting period
□ Yes √ No
The Supervisory Committee has no objection to the supervision matters during the reporting period.IX. Particulars about employees.
1.Number of staff professional structure and educational background
Number of in-service staff of the parent company(person) 99
Number of in-service staff of the main subsidiaries(person) 2907
The total number of the in-service staff(person) 3006
The total number of staff receiving remuneration in the current
3006
period(person)
Retired staff with charges paid by the parent company and
77
main subsidiaries (person)
Professional
Category Number of persons（person）
Operating personnel 2457
Sale personnel 0
Technology Personnel 368
Financial personnel 63
Management personnel 118
Total 3006
Education
Category Number of persons（person）
Holders of master’s degree or above 66
Graduates of regular university 649
Graduates of junior colleges 1699
Other 592
Total 3006
2. Remuneration policies
Guangdong Expressway follows the principle of adhering to the benefit orientation taking into account of
efficiency and fairness and combining incentives with constraints provides active encouragement and paid
attention to the long-term. According to national laws regulations and policies it establishes the annual salary
system for the person in charge of the enterprise and the performance salary system for management posts adopts
the total salary budget to be included in the overall budget management and makes employees' salary closely
linked with individual performance and enterprise benefits according to the interrelated performance contributions
of labor management and skills.The Company provides various benefits in compliance with laws and regulations and employees enjoy
various benefits such as social insurance enterprise annuity supplementary medical care trade union mutual
insurance etc. so as to ensure that employees can share development achievements and thereby arouse their
working passion.
3.Training plan
Each business department organizes employees to participate in the business post training organized by the
602023 Annual Report
competent department of industry and social professional training institutions according to the employee job
characteristics employee job performance and industry development trend of the department. In order to help
enterprises develop with high quality and efficiently complete the task of state-owned enterprise reform it is
planned to carry out special training on state-owned enterprise reform; in order to improve employees' working
satisfaction it is planned to carry out special training on employees' mental health and physical health care. Carry
out continuing education and training for professional and technical personnel. Carry out various training
activities such as special education and incorruption education in cooperation with the party and the masses
supervision and examination etc.
4.Outsourcing situation
□ Applicable √ No Applicable
X. Specification of profit distribution and capitalizing of common reserves
Formulation implementation or adjustment of the profit distribution policy especially the cash dividend policy
during the reporting period
□Applicable √ Not applicable
During the reporting period the Company made a profit and the profit available to shareholders of the parent
company was positive but no cash dividend distribution plan was put forward.□ Applicable √ Not applicable
Profit distribution and capitalization of capital reserve during the reporting period
√ Applicable □ Not applicable
Bonus shares for every ten shares(Shares) 0
Cash dividend for every ten shares (Yuan)(Tax-included) 5.47
A total number of shares as the distribution basis(shares) 2090806126
Cash dividend amount (yuan including tax 1143670950.92
Other means (such as repurchase of shares) cash dividend
0.00
amount (yuan)
Total cash dividend (yuan including tax) 1143670950.92
Distributable profit (yuan) 5156907046.00
The proportion of the total cash dividend (including other
100%
means) in the total profit distribution
Proportion of cash dividend in the distributable profit
The Company is in a fast growth stage there for the cash dividend will reach 80% of the profit distribution at least. Cash dividend
distribution policy.Details of profit distribution or reserve capitalization Preplan
1. Limited to 10% of the registered capital of the Parent company the net profit of the company i.e. 147570987.32 yuan is to be
allocated for statutory common reserve fund；
2.The profit for 2023 is to be distributed as follows: 1143670950.92 yuan. is to be allocated as the fund for dividend distribution
for 2023. with the total shares at the end of 2023 i.e. 2090806126 shares as the base cash dividend of 5.47 yuan (including
tax) is to be distributed for every 10 shares .The remaining undistributed profits are to be carried forward to the next year. The
foreign exchange translation of the cash dividends for shareholders holding B share and overseas corporate shares will be
determined according to HKD:RMB bank’s Middle rate quoted by People’s Bank of China on the first working day after 2023
annual shareholders’ general meeting makes resolution on dividend distribution.XI. Implementation Situation of Stock Incentive Plan of the Company Employee Stock Ownership Plan
or Other Employee Incentive Measures
□Applicable √ Not applicable
612023 Annual Report
None
XII. Construction and implementation of internal control system during the reporting period
1. Construction and implementation of internal control
The Company has established a sound corporate governance structure with clear responsibilities of general
meeting of shareholders Board of Directors Board of Supervisors and management established corporate
governance rules centered by the Articles of Association rules of procedure of general meeting of shareholders
Board of Supervisors Board of Directors and specialized committees thereunder standardized operation of
general meeting of shareholders Board of Directors and Board of Supervisors held and convened relevant
meetings in accordance with the provisions of the Company Law and the Articles of Association and reached legal
and valid resolutions. The general meeting of shareholders is the highest authority of the Company; the Board of
Supervisors is responsible for the general meeting of shareholders and the supervision of directors and
management to perform their duties according to law is sound and effective. The Board of Directors shall be
responsible to the general meeting of shareholders and exercise the business decision-making power according to
law. It is provided with an Audit Committee the independent directors meet the quorum and the decision-making
procedures and management rules of procedure of the Board of Directors are scientific and transparent; the
management is efficient and rigorous in implementing the resolutions of the Board of Directors.The Company has set up 10 functional departments including Investment Development Department Human
Resources Department Financial Management Department Infrastructure Management Department Operation
and Management Department Discipline Inspection and Audit Department Securities Affairs Department
Comprehensive Affairs Department Legal Affairs Department and Party and Mass Work Department. The
distribution of powers and responsibilities and business processes of all functional departments are clear and
reasonable forming a working mechanism of duty performance responsibility shouldering mutual restriction and
coordination. The Company has established a perfect control system for parent-subsidiary companies and formed
a sound internal control system for each subsidiary company. Meanwhile the Company has established and
improved rules and regulations related to risk assessment fraud risk control information and communication and
maintained effective internal control.The Company has set up an Audit Committee under the Board of Directors to supervise the effective
implementation of the Company's internal control and self-evaluation of internal control. The Company has set up
the Discipline Inspection and Audit Department which is responsible for supervising the establishment and
operation of the Company's internal control system evaluating the Company's risk control and evaluating the
effectiveness of the Company's internal control. It has defined the standards of internal control defect
identification rectification procedures and internal control self-evaluation procedures and formed an effective
internal control supervision system.
2.Details of major internal control defects found during the reporting period
□ Yes √ No
XIII. Management and control of the Company's subsidiaries during the reporting period
□Applicable √ Not applicable
XIV. Internal control self-evaluation report or internal control audit report
1.Self-evaluation report on internal control
Disclosure date of appraisal report on
March 162024
internal control
622023 Annual Report
Disclosure index of appraisal report on
www.cninfo.com.cn
internal control
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 100.00%
the company's consolidated financial
statements
Standards of Defects Evaluation
Type Financial Report Non-financial Report
The qualitative criteria for the evaluation The qualitative criteria for the evaluation
of internal control deficiencies in of internal control deficiencies in non-
financial reports confirmed by the financial reports confirmed by the
Company is as follows: The following Company is as follows: Material
situations (including but not limited to) deficiencies: serious violations and beingshall be deemed as “material sentenced to heavy fines or need takingdeficiencies” in the internal control of criminal responsibility; utterly disregard
the financial report. (1) There are major the rules of law illegal behaviors in the
frauds made by the directors or operation and management are
supervisors or senior management particularly severe and the circumstance
personnel in the company’s management is very bad which leads to the
activities; (2)There are material suspension or cessation to the company's
misstatements in the current financial daily operation and management
report but the internal control failed to activities and leads to the audit report
find the misstatements during its with a disclaimer of opinion or a
operation; (3) The supervisions made by negative opinion issued by the CPA; the
Qualitative standard
the company's audit committee and the negative news spread all over the
internal audit organization on the internal country which caused severe damage to
control are invalid; (4) The control the company’s reputation; resulted in
environment is invalid; (5)The material decease of a number of workers or
deficiencies found and reported to the citizens or resulted in damages that are
management but are not corrected within unable to recover to workers or citizens;
a reasonable time; (6)There is an reached the circumstance(grade II) of
administrative punishment from the major environmental event. Significant
securities regulatory deficiencies: illegal and being punished;
institution due to accounting errors. disregard the requirements of the
The following situations (including but company’s management system and the
not limited to) shall be deemed as relevant rules of law there are illegal
“significant deficiencies” in the internal acts of using the authority to seek illegal
control of the financial report and interests in the work which significantly
there are intense signs for the situations affect the efficiency and the result of
becoming “material deficiencies”: (1) daily operation and management
632023 Annual Report
Frauds made by staff in key positions; activities and lead to the audit report with
(2)The supervisory function on qualified opinion issued by the CPA; the
compliance is invalid and the violations negative news spread in a region which
of regulations may have a significant caused the large-extent damage to the
impact on the reliability of the financial company’s reputation; resulted in
report; (3)The significant deficiencies decease of a worker or a citizen or
reported to the management but are not resulted in damages that need long time
corrected within a reasonable period. to recover to workers or citizens;
The following situations (including but reached the circumstance(grade Ⅲ) of
not limited to) shall be deemed as big environmental event. General
“general deficiencies” in the internal deficiencies: minor violations; the
control of the financial report. (1) Frauds awareness of management under in
made by staff in non key positions or compliance with laws and regulations is
business operators execute the weak lacking of business and
implementation procedures not strictly management knowledge and there are
conforming to the company’s policy but phenomena such as being slack in
resulted in no significant impact on the performing management duties being
reliability of the financial report. (2)The passive and poorly execute the institution
supervisory function on compliance is in the work which shall affect the
invalid and the violations of regulations efficiency and the result of daily
may not have a significant impact on the operation and management activities and
reliability of the financial report; (3)The lead to small effects to the company’s
general deficiencies reported to the management goal; the negative news
management but are not corrected within spread within the company which
a reasonable period. caused the little-extent damage to the
company’s
reputation; shortly affected the health of
the workers or citizens and the workers
or citizens can be recovered in a short
time; reached the circumstance(grade
Ⅳ) of general environmental event.The qualitative criteria for the evaluation The qualitative criteria for the evaluation
of internal control deficiencies in of internal control deficiencies in
financial reports confirmed by the financial reports confirmed by the
Company is as follows: Material Company is as follows: Material
deficiencies: potential deficiencies: potential
misstatement≧1% of the total amount of misstatement≧1% of the total amount of
Standards of Quantization the the
owner’s equity or RMB 200 million; owner’s equity or RMB 200 million;
significant deficiencies: 0.5% of the total significant deficiencies: 0.5% of the total
amount of the owner’s equity or RMB amount of the owner’s equity or RMB
100 million≤potential misstatement＜1% 100 million≤potential misstatement＜1%
of the total amount of the owner’s equity of the total amount of the owner’s equity
or RMB 200 million; general or RMB 200 million; general
642023 Annual Report
deficiencies: potential misstatement＜ deficiencies: potential misstatement＜
0.5% of the total amount of the owner’s 0.5% of the total amount of the owner’s
equity or RMB 100 million Standards of equity or RMB 100 million Standards of
Quantization Quantization
Number of major defects in financial
0
reporting（a）
Number of major defects in non financial
0
reporting (a)
Number of important defects in financial
0
reporting（a）
Number of important defects in non
0
financial reporting（a）
2. Internal Control audit report
√ Applicable □Not applicable
Review opinions in the internal control audit report
In our opinion Guangdong Expressway has maintained effective financial report internal control in all material aspects according
to the basic standards for Enterprise internal control and relevant regulations ended December 31 2023.Disclosure of internal audit report Disclosure
Disclosure date of audit report
March 162024
of internal control
Disclosure index of audit report
www.cninfo.com.cn
of internal control (full-text)
Internal audit report’s opinion Unqualified audit opinion
Non-financial reporting has material deficiencies No
Has the CPAs issued a qualified auditor’s report of internal control .□ Yes √No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of
Directors
√Yes □No
XV. Rectification of self-examination problems in special governance actions of listed companies
None.
652023 Annual Report
V. Environmental & Social Responsibility
I. Significant environmental issues
Whether the Company or any of its subsidiaries is identified as a key polluter by the environment authorities
□ Yes √ No
Administrative penalties for environmental problems during the reporting period
None.Measures and effects taken to reduce its carbon emissions during the reporting period
□Applicable √ Not applicable
Reasons for not disclosing other environmental information
None
II. Social responsibilities
For details of CSR work please refer to the "2023 Environmental Social and Governance (ESG) Report of
Guangdong Provincial Expressway Development Co. Ltd" disclosed on Cninfo Information Network
(www.cninfo.com.cn) on March 16 2024
III. Consolidate and expand the achievements of poverty alleviation and rural revitalization
None
662023 Annual Report
VI. Important Events
I. Commitments to fulfill the situation
1.The fulfilled commitments in the reporting period and under-fulfillment commitments by the end of the reporting period made by the company shareholder
actual controller acquirer director supervisor senior management personnel and other related parities.√Applicable □Not applicable
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
1. The explanations commitment and
information provided by the Company for this
transaction are authentic accurate and complete
and there are no false records misleading
statements or major omissions. 2. The
Commitment on information provided by the Company to the
authenticity intermediaries that provide professional services
Commitment November
Guangdong accuracy and such as auditing evaluation legal and financial 25 Permanently effective Normalon share
Expressway
reform completeness of consulting for this transaction is authentic
performance
2020
the information accurate and complete original written
provided information or duplicate information and the
duplicate or photocopy of the information is
consistent with its original information or
original copy; The signatures and seals of all
documents are authentic and the legal
procedures required for signing and sealing have
672023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
been fulfilled and legal authorization has been
obtained; There are no false records misleading
statements or major omissions. 3. The Company
guarantees that it will provide timely
information about this transaction in accordance
with relevant laws and regulations relevant
regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange
ensure the authenticity accuracy and
completeness of such information and
guarantee that there are no false records
misleading statements or major omissions. 4.The Company shall bear individual and joint
legal responsibilities for the authenticity
accuracy and completeness of the information
provided or disclosed for this exchange. In case
of any loss caused to investors due to violation
of the above commitments the Company will
bear corresponding liability for compensation
according to law.All directors Commitment on 1. The explanations commitment and
supervisors and senior authenticity information provided by the Promisee for this November
management accuracy and transaction are authentic accurate and complete 25 Permanently effective Normal
performance
personnel of completeness of and there are no false records misleading 2020
Guangdong the information statements or major omissions. 2. The
682023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Expressway provided information provided by the Promisee to the
intermediaries that provide professional services
such as auditing evaluation legal and financial
consulting for this transaction is authentic
accurate and complete original written
information or duplicate information and the
duplicate or photocopy of the information is
consistent with its original information or
original copy; The signatures and seals of all
documents are authentic and the legal
procedures required for signing and sealing have
been fulfilled and legal authorization has been
obtained; There are no false records misleading
statements or major omissions. 3. The Promisee
guarantees that it will provide timely
information about this transaction in accordance
with relevant laws and regulations relevant
regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange
ensure the authenticity accuracy and
completeness of such information and
guarantee that there are no false records
misleading statements or major omissions. 4. If
this transaction is suspected of false records
misleading statements or major omissions in the
692023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
information provided or disclosed and is put on
file for investigation by judicial organs or by
China Securities Regulatory Commission the
transfer of its shares with interests in the listed
company will be suspended until the
investigation conclusion of the case is obtained.
5. The Promisee shall bear individual and joint
legal responsibilities for the authenticity
accuracy and completeness of the information
provided or disclosed for this exchange. In case
of any loss caused to investors due to violation
of the above commitments the Promisee will
bear corresponding liability for compensation
according to law.
1. I promise not to transfer benefits to other
units or individuals without compensation or
under unfair conditions nor to damage the
All directors
interests of the Company by other means. 2. I
supervisors and senior Commitment on
promise to restrain my job consumption November
management filling measures to
behavior. 3. I promise not to use the assets of 25 Permanently effective Normal
personnel of dilute immediate performance
the Company to engage in any investment and 2020
Guangdong reward
consumption activities unrelated to my duties. 4.Expressway
I promise that the salary system formulated by
the Board of Directors or the Remuneration
Committee of Guangdong Expressway will be
702023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
linked with the implementation of the reward
filling measures of Guangdong Expressway. 5.If Guangdong Expressway plans to implement
equity incentive I promise that the exercise
conditions of equity incentive of Guangdong
Expressway to be announced will be linked with
the implementation of the reward filling
measures. 6. In case of any loss caused to
Guangdong Expressway or its shareholders due
to violation of the above commitments or refusal
to perform the above commitments I will bear
corresponding compensation responsibilities
according to law.
1. The Company and its holding subsidiaries
will not use the controlling shareholder's
holding relationship with Guangdong
Expressway to conduct business activities that
This letter of commitment is valid from the
Guangdong Commitment on harm the legitimate rights and interests of
date of signing to the date when the
Provincial Freeway avoiding Guangdong Expressway its minority June
Provincial Expressway is no longer Normal
Co.Ltd. horizontal shareholders and its holding subsidiaries. 2. The 262015 performance
controlled by the controlling shareholder of
competition Company and its holding subsidiaries will not
Guangdong Expressway
use the information obtained from Guangdong
Expressway and its holding subsidiaries to
engage in the main business competing with
Guangdong Expressway or its holding
712023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
subsidiaries and will not engage in any acts or
activities that damage or may damage the
legitimate rights and interests of Guangdong
Expressway its minority shareholders and its
holding subsidiaries. 3. If the Company and its
holding subsidiaries transfer any toll roads
bridges tunnels and related ancillary facilities or
rights invested or managed by the Company to a
company other than Guangdong
Communications Group Co. Ltd. and the
company directly or indirectly controlled by it
Guangdong Expressway will be entitled to the
preemptive right under the same conditions
unless the transferee is explicitly designated by
the relevant government authorities under the
premise permitted by relevant laws and
regulations. 4. In the future if the Company and
its holding subsidiaries invest in the
construction of expressways parallel to or in the
same direction within 20 km from each side of
the expressway controlled by Guangdong
Expressway Guangdong Expressway will enjoy
the priority of investment over Guangdong
Communications Group Co. Ltd. and its
directly or indirectly controlled companies
722023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
except Guangdong Expressway and its holding
subsidiaries except for the projects whose
investment entities are clearly designated by the
relevant government authorities under the
premise permitted by relevant laws and
regulations.The Company will not damage the
independence of Guangdong Expressway due to
the increase of shares held by the Company after
the completion of this major asset restructuring
and will continue to maintain the principle of
separation from Guangdong Expressway in
terms of assets personnel finance organization This letter of commitment is valid from the
Guangdong Commitment on
and business and strictly abide by the relevant date of signing to the date when the
Provincial Freeway maintaining the June
regulations of China Securities Regulatory Provincial Expressway is no longer Normal
Co.Ltd. independence of 262015 performance
Commission on the independence of listed controlled by the controlling shareholder of
listed companies
companies and will not use Guangdong Guangdong Expressway
Expressway to provide guarantees nor occupy
Guangdong Expressway funds illegally so as to
maintain and protect the independence of
Guangdong Expressway and protect the
legitimate rights and interests of other
shareholders of Guangdong Expressway.Guangdong Commitment on 1. After the completion of this major asset June 26 This letter of commitment is valid from the Normal
Provincial Freeway reducing and restructuring the Company and the companies 2015 date of signing to the date when the performance
732023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Co.Ltd. standardizing directly or indirectly controlled by the Company Provincial Expressway is no longer
related and other related parties will try to avoid related controlled by the controlling shareholder of
transactions transactions with Guangdong Expressway and Guangdong Expressway
its holding subsidiaries; Related transactions
that are really necessary and unavoidable are
carried out in accordance with the principles of
fairness equity and compensation of equal
value. The transaction price is determined at a
reasonable price recognized by the market. The
transaction approval procedures and information
disclosure obligations are performed in
accordance with relevant laws regulations and
normative documents and the interests of
Guangdong Expressway and its minority
shareholders are effectively protected. 2. The
Company guarantees to exercise shareholders'
rights and fulfill shareholders' obligations in
strict accordance with relevant laws and
regulations rules and normative documents
promulgated by China Securities Regulatory
Commission business rules promulgated by
Shenzhen Stock Exchange and Articles of
Association of Guangdong Provincial
Expressway Development Co. Ltd. and it will
not use the controlling position of Guangdong
742023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Expressway's controlling shareholders to seek
improper benefits or damage the legitimate
rights and interests of Guangdong Expressway
and its minority shareholders.
1. The information involved in the explanations
and commitment provided by the Company for
this transaction are authentic accurate and
complete and there are no false records
misleading statements or major omissions. 2.The information provided by the Company to
the intermediaries that provide professional
services such as auditing evaluation legal and
Commitment on
financial consulting for this transaction is
Guangdong authenticity
authentic accurate and complete original November
Provincial Freeway accuracy and
written information or duplicate information 25 Permanently effective Normal
Co.Ltd. completeness of performance
and the duplicate or photocopy of the 2020
the information
information is consistent with its original
provided
information or original copy; The signatures and
seals of all documents are authentic and the
legal procedures required for signing and
sealing have been fulfilled and legal
authorization has been obtained; There are no
false records misleading statements or major
omissions. 3. The Company guarantees that it
will provide timely information about this
752023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
transaction in accordance with relevant laws and
regulations relevant regulations of China
Securities Regulatory Commission and
Shenzhen Stock Exchange ensure the
authenticity accuracy and completeness of such
information and guarantee that there are no
false records misleading statements or major
omissions.The Company and the companies directly or
indirectly controlled by the Company except
Guangdong Expressway and its holding
subsidiaries will not damage the independence
of Guangdong Expressway due to the increase
in the shares of Guangdong Expressway held by
the Company and the companies directly or
Commitment on This letter of commitment is valid from the
Guangdong indirectly controlled by the Company except
maintaining the June 18 date of signing to the date when the
Communications Guangdong Expressway and its holding NormalProvincial Expressway is no longer
independence of 2015 performance
Group subsidiaries after the completion of this major controlled by the controlling shareholder of
listed companies Guangdong Expressway
asset restructuring and will continue to maintain
the principle of separation from Guangdong
Expressway in terms of assets personnel
finance organization and business and strictly
abide by the relevant regulations of China
Securities Regulatory Commission on the
independence of listed companies and will not
762023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
use Guangdong Expressway to provide
guarantees nor occupy Guangdong Expressway
funds illegally so as to maintain and protect the
independence of Guangdong Expressway and
protect the legitimate rights and interests of
other shareholders of Guangdong Expressway.
1. The Company and the companies directly or
indirectly controlled by the Company except
Guangdong Expressway and its holding
subsidiaries will not use the controlling
shareholder's holding relationship with
Guangdong Expressway to conduct business
activities that harm the legitimate rights and
interests of Guangdong Expressway its This letter of commitment is valid from the
Commitment on
Guangdong minority shareholders and its holding date of signing to the date when the
avoiding June
Communications subsidiaries. 2. The Company and the Provincial Expressway is no longer Normal
horizontal 262015 performance
Group companies directly or indirectly controlled by controlled by the controlling shareholder of
competition
the Company except Guangdong Expressway Guangdong Expressway
and its holding subsidiaries will not use the
information obtained from Guangdong
Expressway and its holding subsidiaries to
engage in the main business competing with
Guangdong Expressway or its holding
subsidiaries and will not engage in any acts or
activities that damage or may damage the
772023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
legitimate rights and interests of Guangdong
Expressway its minority shareholders and its
holding subsidiaries. 3. If the Company and
other companies directly or indirectly controlled
by the Company except Guangdong Expressway
and its holding subsidiaries transfer any toll
roads bridges tunnels and related ancillary
facilities or interests invested or managed by the
Company to companies other than the Company
directly or indirectly controlled by the
Company Guangdong Expressway shall be
entitled to the preemptive right under the same
conditions unless the transferee is explicitly
designated by the relevant government
authorities under the premise permitted by
relevant laws and regulations. 4. In the future if
the Company and the companies directly or
indirectly controlled by the Company except
Guangdong Expressway and its holding
subsidiaries invest in the construction of
expressways parallel to or in the same direction
within 20 km from each side of the expressway
controlled by Guangdong Expressway
Guangdong Expressway will be entitled to the
priority investment right compared with the
782023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Company and the companies directly or
indirectly controlled by the Company except
Guangdong Expressway and its holding
subsidiaries except for the projects whose
investment entities are clearly designated by the
relevant government authorities under the
premise permitted by relevant laws and
regulations.
1. After the completion of this major asset
restructuring the Company and other companies
and other related parties directly or indirectly
controlled by the Company except Guangdong
Expressway and its holding subsidiaries will try
to avoid related transactions with Guangdong
Commitment on Expressway and its holding subsidiaries; This letter of commitment is valid from the
Guangdong reducing and Related transactions that are really necessary date of signing to the date when the
June
Communications standardizing and unavoidable are carried out in accordance Provincial Expressway is no longer Normal
182015 performance
Group related with the principles of fairness equity and controlled by the controlling shareholder of
transactions compensation of equal value. The transaction Guangdong Expressway
price is determined at a reasonable price
recognized by the market. The transaction
approval procedures and information disclosure
obligations are performed in accordance with
relevant laws regulations and normative
documents and the interests of Guangdong
792023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Expressway and its minority shareholders are
effectively protected. 2. The Company
guarantees to exercise shareholders' rights and
fulfill shareholders' obligations in strict
accordance with relevant laws and regulations
rules and normative documents promulgated by
China Securities Regulatory Commission
business rules promulgated by Shenzhen Stock
Exchange and Articles of Association of
Guangdong Provincial Expressway
Development Co. Ltd. and it will not use the
controlling position of controlling shareholders
to seek improper benefits or damage the
legitimate rights and interests of Guangdong
Expressway and its minority shareholders.
1. The explanations commitment and
information provided by the Company for this
Commitment on
transaction are authentic accurate and complete
authenticity
Guangdong and there are no false records misleading November
accuracy and Normal
Communications statements or major omissions. 2. The 25 Permanently effective
completeness of performance
Group information provided by the Company to the 2020
the information
intermediaries that provide professional services
provided
such as auditing evaluation legal and financial
consulting for this transaction is authentic
802023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
accurate and complete original written
information or duplicate information and the
duplicate or photocopy of the information is
consistent with its original information or
original copy; The signatures and seals of all
documents are authentic and the legal
procedures required for signing and sealing have
been fulfilled and legal authorization has been
obtained; The validity of the originals of each
document has not been revoked within its
validity period and such originals are held by
their respective legal holders up to now; There
are no false records misleading statements or
major omissions. 3. The Company guarantees
that if there are false records misleading
statements or major omissions in the
information provided or disclosed for this
transaction which are filed for investigation by
judicial organs or filed for investigation by
China Securities Regulatory Commission
before the investigation conclusion is revealed
the Company promises to suspend the transfer
of shares with interests in Guangdong
Expressway and submit the written application
for suspension of transfer and the stock account
812023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
to the Board of Directors of Guangdong
Expressway within two trading days after
receiving the notice of filing inspection and the
Board of Directors of Guangdong Expressway
will apply for locking on behalf of the Company
to the stock exchange and the registration and
clearing company; If the application for locking
is not submitted within two trading days the
Board of Directors of Guangdong Expressway is
authorized to directly submit the identity
information and account information of the
Company to the stock exchange and the
registration and clearing company after
verification and apply for locking; If the Board
of Directors of Guangdong Expressway fails to
submit the Company's identity information and
account information to the stock exchange and
the registration and clearing company the stock
exchange and the registration and clearing
company are authorized to directly lock the
relevant shares. If the investigation results show
that there are violations of laws and regulations
the Company promises to lock in shares and use
them voluntarily for compensation arrangements
of relevant investors. 4. The Company shall bear
822023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
individual and joint legal responsibilities for the
authenticity accuracy and completeness of the
information provided or disclosed for this
exchange. In case of any loss caused to
Guangdong Expressway or investors due to
violation of the above commitments the
Company will bear corresponding liability for
compensation according to law.
1. It will not interfere with the business
activities of Guangdong Expressway beyond
authority and will not encroach on the interests
Commitment on
Guangdong of Guangdong Expressway. 2. In case of any November
fulfilling filling Normal
Communications loss caused to Guangdong Expressway or 25 Permanently effective
measures to dilute performance
Group investors due to violation of the above 2020
immediate reward
commitments the Company will bear
corresponding liability for compensation
according to law.
1. The land occupied and used by Guangzhou-
Huizhou Expressway with a total area of
Commitment on 3732185.08 square meters has not yet obtained
Guangdong November
land and real the ownership certificate. The Company Normal
Communications 25 Permanently effective
estate of Guanghui undertakes that: (1) The ownership of the land performance
Group 2020
Expressway use right of the above-mentioned land is clear
with no dispute and Guangzhou-Huizhou
Expressway can legally occupy and use the
832023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
above-mentioned land; (2) Guangzhou-Huizhou
Expressway will continue to effectively occupy
and use the relevant land before the ownership
certificate is obtained and will not be materially
adversely affected thereby; (3) After the
completion of this transaction if Guangdong
Expressway suffers losses as a shareholder of
Guangzhou-Huizhou Expressway for losses
suffered because Guangzhou-Huizhou
Expressway occupies and uses the above-
mentioned land without ownership certificate or
engages in engineering construction on such
land the Company will bear the actual losses
suffered by Guangdong Expressway. 2. The
land occupied and used by Guangzhou-Huizhou
Expressway with a total area of 12324867.92
square meters is currently registered under the
name of Guangdong Changda Highway
Engineering Co. Ltd. (now renamed as "Poly
Changda Engineering Co. Ltd." hereinafter
referred to as "Changda Company") of which
8799336.79 square meters of land has obtained
the ownership certificate and the other
3525531.13 square meters of land has not yet
obtained the ownership certificate. The
842023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Company promises that after the completion of
this transaction if Guangdong Expressway
suffers losses as a shareholder of Guangzhou-
Huizhou Expressway and because Guanghui
Expressway occupies and uses the land
registered under the name of Changda
Company the Company will bear the actual
losses suffered by Guangdong Expressway. 3.The property ownership certificate has not been
obtained for the property with a total area of
72364.655 square meters occupied and used by
Guangzhou-Huizhou Expressway. The
Company promises that: (1) The ownership of
the above-mentioned property without
ownership certificate currently used by
Guanghui Expressway is clear with no dispute
and Guangzhou-Huizhou Expressway can
legally occupy and use the above-mentioned
property; (2) Guangzhou-Huizhou Expressway
will continue to effectively occupy and use the
above-mentioned property before the property
ownership certificate is obtained and will not be
materially adversely affected; (3) After the
completion of this transaction if Guangdong
Expressway suffers losses as a shareholder of
852023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
Guangzhou-Huizhou Expressway and because
Guangzhou-Huizhou Expressway occupies and
uses the above-mentioned property without
relevant property ownership certificate the
Company will bear the actual losses suffered by
Guangdong Expressway.
1. The explanations commitment and
information provided by the Company for this
transaction are authentic accurate and complete
and there are no false records misleading
statements or major omissions. 2. The
information provided by the Company to the
intermediaries that provide professional services
Commitment on
such as auditing evaluation legal and financial
authenticity
consulting for this transaction is authentic November
Guangdong Guanghui accuracy and Normal
accurate and complete original written 25 Permanently effective
Expressway Co. Ltd. completeness of performance
information or duplicate information and the 2020
the information
duplicate or photocopy of the information is
provided
consistent with its original information or
original copy; The signatures and seals of all
documents are authentic and the legal
procedures required for signing and sealing have
been fulfilled and legal authorization has been
obtained; There are no false records misleading
statements or major omissions. 3. The Company
862023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
guarantees that it will provide timely
information about this transaction in accordance
with relevant laws and regulations relevant
regulations of China Securities Regulatory
Commission and Shenzhen Stock Exchange
ensure the authenticity accuracy and
completeness of such information and
guarantee that there are no false records
misleading statements or major omissions. 4.The Company shall bear individual and joint
legal responsibilities for the authenticity
accuracy and completeness of the information
provided or disclosed for this exchange. In case
of any loss caused to investors due to violation
of the above commitments the Company will
bear corresponding liability for compensation
according to law.In order to promote the smooth progress of the It continued to push forward the progress of
issue of shares the cash purchase of assets and accreditation and completed the registration
the raising of matching funds (hereinafter procedures of relevant land and real estate
Guangdong
referred to as "the major asset restructuring") April ownership within three years after the Normal
Communication Other commitment
approved by Guangdong Expressway 272019 relevant policies were clear and the relevant performance
Group Co. Ltd
Development Co. Ltd. at its second land and real estate met the conditions for
extraordinary shareholders' meeting in 2015 handling the registration procedures of
with regard to all the land and real estate ownership in accordance with the relevant
872023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
(hereinafter referred to as "relevant land and real laws and regulations and the requirements
estate") owned by Guangdong Fokai of the competent government departments
Expressway Co. Ltd. (hereinafter referred to as
"Fokai Company") and Jingzhu Expressway
Guangzhu Section Co. Ltd. (hereinafter referred
to as "Guangzhu East Company") without
ownership certificates (hereinafter referred to as
"relevant land and real estate") disclosed in the
report of Guangdong Expressway Development
Co. Ltd. on issuing shares and paying cash to
purchase assets and raising matching funds and
related transactions the company undertook to
urge Fokai Company and Guangzhu East
Company to go through the ownership
registration formalities according to the
following plan under the condition that it is
conducive to safeguarding the rights and
interests of listed companies; Continued to push
forward the progress of accreditation and
completed the registration procedures of
relevant land and real estate ownership within
three years after the relevant policies were clear
and the relevant land and real estate met the
conditions for handling the registration
procedures of ownership in accordance with the
882023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
relevant laws and regulations and the
requirements of the competent government
departments.The predicted net profit of Guangdong
Guanghui Expressway Co. Ltd. after deducting
non-recurring gains and losses in 2020 2021
and 2022 (hereinafter referred to as "predicted
net profit") is RMB 652477500 RMB
1112587300 and RMB 1234200900
Guangdong
respectively. According to the special audit November
Provincial Freeway Performance
opinion issued by the accounting firm if the 25 2020-2022 Normal
Co.Ltd. commitment performance
accumulated realized net profit of Guangdong 2020
Guangzhou-Huizhou Expressway Co. Ltd. at
the end of any fiscal year does not reach the
accumulated predicted net profit within the
compensation period Guangdong Provincial
Freeway Co.Ltd. will compensate in cash as
agreed.The proposal on change of performance
commitment of the major asset restructuring
Guangdong
project in 2020 and signing the supplementary
Provincial Freeway Performance
agreement to the profit compensation agreement August Normal202020212023
Co.Ltd. commitment 232023 performance
was reviewed in approved in the Company's first
extraordinary general meeting of shareholders in
2023 agreed to change the performance
892023 Annual Report
Time of
making
Period of commitment Fulfillment
Commitment Commitment maker Type Contents commitment
commitment of the major asset restructuring
project in 2020 and agreed the Company to sign
the "Supplementary Agreement to the Profit
Compensation Agreement" with the Provincial
Expressway. The performance compensation
period for the asset restructuring was adjusted to
2020 2021 and 2023. The provincial
expressway promised that the net profit
accumulated by Guanghui Expressway in 2020
2021 and 2023 after deducting non-recurring
profits and losses will not be less than
2999265700 yuan.
Completed on
Yes
time(Y/N)
902023 Annual Report
2.The existence of the company's assets or projects earnings forecasts and earnings reporting period is still in
the forecast period the company has assets or projects meet the original profit forecast made and the reasons
explained
√Applicable □ Not applicable
Current Current Reasons for
Earnings Original Original
forecast Actual not meeting
forecast asset Forecast start Forecast end forecast forecast
performance performance the forecast
or project time time disclosure disclosure
(RMB'00000 (RMB'00000 (if
name date index
） ） applicable)
The
year of 2023
is the first
year of
economic
recovery and
development
after the
transition of
prevention
and control
and it is in a
period of
domestic
macroecono
mic
Guanghui fluctuations
January December
Expressway 299926.57 295104.16 and
December http://www.c
12020 312023 292020 ninfo.com.cn
Co. Ltd. economic
recovery.After the
restoration of
social order
the public's
willingness
to travel by
car has
increased
and the
number of
passenger car
trips has
rebounded
steadily but
the
912023 Annual Report
continuous
recovery and
development
of the
economy is
less than
expected
and the
growth rate
of freight
traffic on
Guanghui
Expressway
has slowed
down
resulting in
Guanghui
Company not
completed
the expected
performance.Commitments made by the company’s shareholders and counterparties in the reporting year’s operating perform
ance
□Applicable □Not applicable
On August 8 2023 the "Proposal on Changing the Performance Commitment of the Major Asset
Restructuring Project in 2020 and Signing the Supplementary Agreement to the Profit Compensation
Agreement" was deliberated and approved in the 10th provisional meeting of the 10th board of directors of the
Company. On August 23 2023 the "Proposal on Changing the Performance Commitment of the Major Asset
Restructuring Project in 2020 and Signing the Supplementary Agreement to the Profit Compensation
Agreement" was deliberated and approved in the Company's first provisional general meeting of shareholders in
2023.
Since Guanghui Expressway was most seriously affected by domestic macroeconomic fluctuations in 2022
the Company and Provincial Expressway agreed that the year of 2022 was not included in the performance
compensation period of the restructuring under the original profit compensation agreement and the
performance compensation period of this restructuring was adjusted to 2020 2021 and 2023. The provincial
expressway promised that the net profit accumulated by Guanghui Expressway in 2020 2021 and 2023 after
deducting non-recurring profits and losses will not be less than 2999265700 yuan. If the cumulative net profit
of Guanghui Company does not reach the afore-mentioned cumulative promised net profit during the above-
mentioned adjusted compensation period the Provincial Expressway shall compensate the Company in cash in
accordance with the Profit Compensation Agreement and the provisions of this Agreement.The fulfillment of performance commitment and its impact on goodwill impairment testing
In 2023 Guanghui Company achieved a net profit of 1077811400 yuan with the net profit of
1076364600 yuan after deducting non-recurring gains and losses and the actual profit was 157836300 yuan
less than the promised amount of 1234200900 yuan with a completion rate of 87.21%.
922023 Annual Report
For 2020 2021 and 2023 Guanghui Company's cumulative net profit achieved after deducting non-
recurring profits and losses was 2951041600 yuan. Based on the promised net profit after deducting non-
recurring profits and losses in 2020 2021 and 2023 was2999265700 yuan the cumulative actual profit was
48224100 yuan less than the promised with the completion rate of 98.39%.
This major asset reorganization is a business combination under the same control and no business
reputation is recognized.In accordance with the relevant provisions of the Administrative Measures for the Major Asset
Restructuring of Listed Companies and the relevant requirements of the Agreement on Paying Cash to Purchase
21% Equity of Guangdong Guanghui Expressway Co. Ltd. the Profit Compensation Agreement and the
Supplementary Agreement to the Profit Compensation Agreement signed between the Company and the
Provincial Expressway the Company has prepared the Impairment Test Report on the Subject Assets of Major
Asset Restructuring. And the assets of the restructuring were not impaired reviewed by an accounting firm.II. Particulars about the non-operating occupation of funds by the controlling shareholder
□ Applicable √ Not applicable
None
III. Illegal provision of guarantees for external parties
□ Applicable √ Not applicable
None
IV. Explanation of the Board of Directors on the latest "Non-standard Audit Report"
□ Applicable √ Not applicable
V. Notes for “non-standard audit report” of CPAs firm during the Reporting Period by board of
directors and supervisory board
□ Applicable √ Not applicable
VI. Explain change of the accounting policy accounting estimate and measurement methods as compared
with the financial reporting of last year.□Applicable □Applicable
Arising from Individual Transactions" in Interpretation No.16 of Accounting Standards for Business Enterprises.On November 30 2022 the Ministry of Finance issued the Interpretation No.16 of Accounting Standards
for Business Enterprises (CK [2022] No.31) (hereinafter referred to as "Interpretation No.16"). With the
resolution of the Seventh Meeting of the Tenth Board of Directors of the Company on March 20 2023 the
Company implemented the relevant provisions of the Interpretation No.16 on January 1 2023.According to Interpretation No.16 for the taxable temporary differences and deductible temporary
differences caused by the initial recognition of assets and liabilities in a single transaction that is not a business
merger does not affect accounting profits or taxable income (or deductible losses) at the time of transaction
and the initial recognition of assets and liabilities leads to equal taxable temporary differences and deductible
temporary differences the Company respectively recognizes the corresponding deferred income tax liabilities
and deferred income tax assets at the time of transaction according to the Accounting Standards for Business
Enterprises No.18-Income Tax and other relevant provisions.
932023 Annual Report
VII.Explain change of the consolidation scope as compared with the financial reporting of last year.□ Applicable √ Not applicable
None
VIII. Engagement/Disengagement of CPAs
CPAs currently engaged
Yong Tuo Certified Public Accountants (Special General
Name of the domestic CPAs
Partnership)
Remuneration for domestic accounting firm (Ten thousands yuan) 132
Successive years of the domestic CPAs offering auditing services 4 years
Name of CPA Sun Xiuqing Huang Zhiyan
Continuous years of audit services of certified public accountants
4
of domestic public accounting firmsName of the Overseas CPAs（If any NoneRemumeration for overseas accounting firm (Ten thousands yuan)
0（If any）
Successive years of the overseas CPAs offering auditing services
None（If any）
Name of CPA（If any） None
Continuous years of audit services of certified public accountants
None
of overseas public accounting firms（if any）
Has the CPAs been changed in the current period
□Yes √ No
A detailed explanation of the change of employment and accounting firm
√Applicable □ Not applicable
On March 20 2023 the "Proposal on Hiring the Internal Control Audit Agency for 2023" was approved in
the 7th meeting of the Tenth session of the board of directors and it agreed that the Company will continue to
hire Yongtuo Accounting Firm (LLP) as the internal control auditor for 2023. On June 28 2023 the "Proposal
on Hiring the Internal Control Audit Agency for 2023" was approved in the Company's 2022 Annual General
Meeting of Shareholders.IX. Situation of Facing Listing Suspension and Listing Termination after the Disclosure of the Yearly
Report
□Applicable √ Not applicable
X. Relevant Matters of Bankruptcy Reorganization
□Applicable √ Not applicable
None
XI. Matters of Important Lawsuit and Arbitration
□Applicable √ Not applicable
None
XII. Situation of Punishment and Rectification
□Applicable √ Not applicable
None
XIII. Credit Condition of the Company and its Controlling Shareholders and Actual Controllers
942023 Annual Report
□Applicable √ Not applicable
XIV. Material related transactions
1. Related transactions in connection with daily operation
□Applicable √ Not applicable
None
2. Related-party transactions arising from asset acquisition or sale
□Applicable √ Not applicable
None
3. Related-party transitions with joint investments
□Applicable √ Not applicable
None
4. Credits and liabilities with related parties
□Applicable √ Not applicable
None
5. Transactions with related finance company especially one that is controlled by the Company
√ Applicable □Not applicable
Deposit business
Related party Relationship Maximum Deposit Beginning The amount of this period
daily deposit interest rate balance(R Total amount
Total deposit
limit(RMB'0 range MB'00000 is withdrawn Ending
amount balance(RM
0000） ） for this(RMB'0000 B'00000）
period(RMB
0）'00000）
Guangdong
Controlled
Communicati
by the same
ons Group 300000.00 0.35%-2.85% 239396.61 813666.48 785248.27 267814.82
parent
Finance Co.company
Ltd
Loan business
Related party Relationship Beginning The amount of this period
balance(RM Total
Total loanLoan B'00000） repayment
Loant interest amount of Ending
limit(RMB'0 amount of balance(RM
rate range the current
0000） the current B'00000）
period(RMB'
period(RMB'
00000）
00000）
Guangdong
Controlled
Communicati
by the same
ons Group 400000.00 2.95%-3.40% 62859.33 22020.36 44246.77 40632.92
parent
Finance Co.company
Ltd
Credit extension or other financial services
Related party Relationship Business type Total Actual amountamount(RMB'00000） incurred(RMB'00000
952023 Annual Report
）
Guangdong
Communications Controlled by the same
Credit extension 400000.00 40000.00
Group Finance Co. parent company
Ltd
6. Transactions between the financial company controlled by the Company and related parties
□ Applicable √Not applicable
There is no deposit loan credit or other financial business between the financial company controlled by the
Company and related parties.
7. Other significant related-party transactions
√ Applicable □Not applicable
1.The Proposal on Concerning the Company Daily Associated Transactions Predicted of 2023 was reviewed
and approved in the 7th meeting of the Tenth board of directors of the CompanyAgree on the predicted daily
associated transactions for the company headquarters wholly-owned and holding subsidiaries of 2023 whose
amount in total is RMB 58.6612 million .
2. The Proposal on Signing the Office Property Lease Contract of the 45th and the 46th Floors of Litong
Plaza was reviewed and approved in the 7th meeting of the Tenth board of directors of the Company It’s agreed
that the Company will continue to lease the entire 43rd floor and 44th floor units of Litong Plaza (self-
numbered floors 45 and 46) as office space for use from Guangdong Litong Development Investment Co. Ltd
with a lease period of 3 years from May 5 2023 to May 4 2026. The monthly rent standard is RMB 908133.47
for the period from May 5 2023 to May 4 2024 the monthly rent standard is RMB 935400.05 for the period
from May 5 2024 to May 4 2025 and the monthly rent for the period from May 5 2025 to May 4 2026 is
RMB 963449.61.
3. The "Proposal on Increasing Capital to Zhaoqing Yuezhao Highway Co. Ltd. to Invest in the
Reconstruction and Expansion Project of the Yuejing Hengjiang to Ma'an Section of the G80 Guangzhou-
Kunming Expressway" was reviewed and approved in the 13th meeting of the Tenth board of directors of the
Company:
(1)Agreed that the Company will increase capital to Zhaoqing Yuezhao Highway Co. Ltd. to invest in the
construction of the reconstruction and expansion project of the section from Yuejing
Hengjiang to Ma'an of the G80 Guangzhou-Kunming Expressway;
(2)It’s agreed that the Company will take the estimated investment amount of 9.22 billion yuan approved by the
Guangdong Provincial Development and Reform Commission as the basis the project capital is 35% of the
total investment that is 3.227 billion yuan and the Company will bear the capital contribution of 806.75
million yuan according to the 25% share ratio of Zhaoqing Yuezhao Highway Co. Ltd. and the final settlement
price of the project shall prevail.
4. The "Proposal on Renewal of the Financial Services Agreement with Guangdong Communications Group
Finance Co. Ltd". was reviewed and approved in the 15th meeting of the Tenth board of directors of the
Company.The website to disclose the interim announcements on significant related-party transactions
Date of disclosing provisional Description of the website for disclosing
Description of provisional announcement
announcement provisional announcements
Estimates announcement of the Daily
March 212023 www.cninfo.com.cn
Related Party Transaction of 2023
962023 Annual Report
Announcement of related party
March 212023 www.cninfo.com.cn
transaction
Announcement of related party
October 212023 www.cninfo.com.cn
transaction
Announcement of related party
November 182023 www.cninfo.com.cn
transaction
XV. Significant contracts and execution
1.Entrustments contracting and leasing
（1）Entrustment
□Applicable √ Not applicable
No such cases in the reporting period.
（2）Contracting
□Applicable √ Not applicable
No such cases in the reporting period.
（3）Leasing
□Applicable □√ Not applicable
During the reporting period the Company generated a rental income of RMB 32310227.17 with the main
leased assets of houses and buildings.
2.Significant Guarantees
□Applicable √ Not applicable
No such cases in the reporting period.
3.Situation of Entrusting Others for Managing Spot Asset
(1)Situation of Entrusted Finance
□ Applicable √ Not applicable
None
(2)Situation of Entrusted Loans
4. Other significant contract
□ Applicable √ Not applicable
XVI. Explanation on other significant events
√Applicable□ Not applicable
The "Proposal on Increasing Capital to Zhaoqing Yuezhao Highway Co. Ltd. to Invest in the Reconstruction
and Expansion Project of the Yuejing Hengjiang to Ma'an Section of the G80 Guangzhou-Kunming
Expressway" was reviewed and approved in the 13th meeting of the Tenth board of directors of the Company:
(1)Agreed that the Company will increase capital to Zhaoqing Yuezhao Highway Co. Ltd. to invest in the
construction of the reconstruction and expansion project of the section from Yuejing
Hengjiang to Ma'an of the G80 Guangzhou-Kunming Expressway;
(2)It’s agreed that the Company will take the estimated investment amount of 9.22 billion yuan approved by the
Guangdong Provincial Development and Reform Commission as the basis the project capital is 35% of the
total investment that is 3.227 billion yuan and the Company will bear the capital contribution of 806.75
million yuan according to the 25% share ratio of Zhaoqing Yuezhao Highway Co. Ltd. and the final settlement
price of the project shall prevail.The "Proposal on Increasing Capital to Zhaoqing Yuezhao Highway Co. Ltd. to Invest in the Reconstruction
and Expansion Project of the Yuejing Hengjiang to Ma'an Section of the G80 Guangzhou-Kunming
Expressway" was reviewed and approved second provisional general Meeting of shareholders in 2023 on
972023 Annual Report
November 7 2023. in the 13th meeting of the Tenth board of directors of the Company:
Date of disclosing
Description of the website for disclosing
Description of provisional announcement provisional
provisional announcements
announcement
Announcement of Resolutions of the 13th (Provisional)
2023-10-21 www.cninfo.com.cn
Meeting of the Ten Board of Directors
Announcement of related party transaction 2023-10-21 www.cninfo.com.cn
The second provisional general Meeting of
2023-11-07 www.cninfo.com.cn
shareholders in 2023
XVII. Significant event of subsidiary of the Company
□Applicable□Not applicable
982023 Annual Report
VII. Change of share capital and shareholding of Principal Shareholders
I. Changes in share capital
1. Changes in share capital
In shares
Before the change Increase/decrease（+，-） After the ChangeAmount Proporti Capit
on Bo alizati
Shar
nu on of
e Proportio
s comm Other Subtotal Quantity
allot n
sha on
ment
res reserv
e fund
1.Shares with conditional
43883339520.99%-5850-585043882754520.99%
subscription
1.State-owned shares 410105738 19.61% 410105738 19.61%
2.State-owned legal person
217127381.04%217127381.04%
shares
3.Other domestic shares 7014919 0.34% -5850 -5850 7009069 0.34%
Including ：Domestic
65439360.31%-4214-421465397220.31%
Legal person shares
Domestic natural person
4709830.02%-1636-16364693470.02%
shares
4.Foreign shares 0 0.00% 0 0.00%
Including：Foreign legal
00.00%00.00%
person shares
Foreign natural person
00.00%00.00%
shares
II.Shares with
165197273179.01%58505850165197858179.01%
unconditional subscription
1.Common shares in RMB 1303324056 62.34% 5850 5850 1303329906 62.34%
2.Foreign shares in
34864867516.68%34864867516.68%
domestic market
3.Foreign shares in foreign
00.00%00.00%
market
4.Other 0 0.00% 0 0.00%
III. Total of capital shares 100.002090806126 0 0 2090806126 100.00%
%
Reasons for share changed
√Applicable □Not applicable
1. During the reporting period 4214 shares held by "domestic legal persons" were converted into shares
held by "domestic natural persons".
2. During the reporting period The
5850 "restricted shares held by domestic natural persons" held by the resigned director Mr. Du Jun were conver
ted into "unrestricted shares"
992023 Annual Report
Approval of Change of Shares
□Applicable √Not applicable
Ownership transfer of share changes
□Applicable √Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□Applicable √Not applicable
Other information necessary to disclose for the company or need to disclosed under requirement from security
regulators
□Applicable √Not applicable
2. Change of shares with limited sales condition
√ Applicable □Not applicable
In shares
Number of
Initial Number of Restricted Reason for Date of
Shareholder Increased
Restricted Unrestricted Shares in the Restricted Restriction
Name Restricted Shares
Shares Shares This Term End of the Term Shares Removal
This Term
Outgoing
Du Jun 5850 0 5850 0 executives March 2023
locked up shares
Total 5850 0 5850 0 -- --
II. Securities issue and listing
1.Explanation of the Situation of the Security Issue(No Preferred Shares) in the Report Period
□ Applicable √ Not applicable
2.Change of asset and liability structure caused by change of total capital shares and structure
□ Applicable √ Not applicable
3.About the existing employees’ shares
□Applicable √Not applicable
1002023 Annual Report
III. Shareholders and actual controlling shareholder
1. Number of shareholders and shareholding
In Shares
Total Total preference
Total number of shareholders shareholders with
at the end of
common the month The total number of preferred shareholders voting voting rights
shareholders at the 48738 from the 49323 rights 0 recovered at end 0
end of the date of restored at period-end (if any)(Note 8) of last month
disclosing
reporting period the annual before annual
report report disclosed(if any)(Note8)
Particulars about shares held above 5% by shareholders or top ten shareholders
Proportion Number of Amount of Amount of un- Number of share pledged/frozen
Nature of
Shareholders of shares shares held at Changes in reporting period restricted restricted
shareholder State of share Amount
held（%） period -end shares held shares held
Guangdong State-
Communication owned legal 24.56% 513485480 0 410105738 103379742 Not applicable 0
Group Co.Ltd person
Guangdong
State-
Highway
owned legal 22.30% 466325020 0 0 0 Not applicable 0
Construction Co.person
Ltd
Shangdong
Expressway State-
Investment owned legal 10.10% 211143845 74600 0 0 Not applicable 0
Development Co. person
Ltd.Tibet Hetai State-
Business owned legal 2.84% 59400250 -41814324 0 0 Not applicable 0
management person
1012023 Annual Report
Co.Ltd.Guangdong State-
Provincial Freeway owned legal 2.53% 52937491 0 19582228 33355263 Not applicable 0
Co.Ltd. person
Overseas
HKSCC 1.58% 32996515 21059581 0 0 Not applicable 0
legal person
China Life
Insurance Co. Ltd
－Traditional－ Other 1.37% 28743595 28743595 0 0 Not applicable 0
General Insurance
products－005L－
CT001 Hu
China Construction
Bank Co. Ltd－
Yinhua rich theme Other 0.94% 19621641 19621641 0 0 Not applicable 0
hybrid securities
investment fund
Domestic
natural
Feng Wuchu person 0.88% 18496329 -4878076 0 0 Not applicable 0
shares
Overseas
Xinyue Co. Ltd. 0.63% 13201086 0 0 0 Not applicable 0
legal person
Strategic investor or general legal
person becoming top-10 ordinary
None
shareholder due to rights issue (if
any) (see note 3)
Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway Construction Co. Ltd.，Guangdong Provincial FreewayRelated or acting-in-concert
Co.Ltd. and Xinyue Co. Ltd. It is unknown whether there is relationship between other shareholders and whether they are persons taking concerted action
parties among shareholders above
specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies.Above shareholders entrusting or
None
entrusted with voting rights or
1022023 Annual Report
waiving voting rights
Top 10 shareholders including the
special account for repurchase (if None
any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares
Share type
Name of the shareholder Quantity of unrestricted shares held at the end of the reporting period
Share type Quantity
Guangdong Highway Construction
466325020 RMB Common shares 466325020
Co. Ltd
Shangdong Expressway
211143845 RMB Common shares 211143845
Investment Development Co. Ltd.Guangdong Communication
103379742 RMB Common shares 103379742
Group Co.Ltd
Tibet Hetai Business management
59400250 RMB Common shares 59400250
Co.Ltd.Guangdong Provincial Freeway
33355263 RMB Common shares 33355263
Co.Ltd.HKSCC 32996515 RMB Common shares 32996515
China Life Insurance Co. Ltd－
Traditional－General Insurance 28743595 RMB Common shares 28743595
products－005L－CT001 Hu
China Construction Bank Co. Ltd
－Yinhua rich theme hybrid 19621641 RMB Common shares 19621641
securities investment fund
RMB Common shares 15528866
Feng Wuchu 18496329
Foreign shares placed in domestic 2967463
Xinyue Co. Ltd. 13201086 Foreign shares placed in domestic 13201086
Explanation on associated
relationship or consistent action Guangdong Communication Group Co. Ltd. is the parent company of Guangdong Highway Construction Co. Ltd. ，Guangdong Provincial Freewayamong the top 10 shareholders of Co.Ltd. and Xinyue Co. Ltd. It is unknown whether there is relationship between other shareholders and whether they are persons taking concerted action
non-restricted negotiable shares specified in the Regulations on Disclosure of Information about Change in Shareholding of Shareholders of Listed Companies.and that between the top 10
1032023 Annual Report
shareholders of non-restricted
negotiable shares and top 10
shareholders
Top 10 ordinary shareholders
conducting securities margin None
trading (if any) (see note 4)
Lending of shares by the top ten shareholders participating in refinancing business
□ Applicable √ Not applicable
The top ten shareholders have changed from the previous period
□Applicable □Not applicable
In RMB
Changes of the top ten shareholders compared with the end of the previous period
Number of shares held by shareholders in general accounts and
Number of shares lent by refinancing at
Addition/Withdrawal in this credit accounts and lent by refinancing at the end of the period and
Name of shareholder (full name) the end of the period and not yet returned
reporting period not yet returned
Total quantity Total quantity Total quantity Proportion of total share capital
HKSCC Addition 0 0.00% 0 0.00%
China Life Insurance Co. Ltd－
Traditional－General Insurance products Addition 0 0.00% 0 0.00%
－005L－CT001 Hu
China Construction Bank Co. Ltd－
Yinhua rich theme hybrid securities Addition 0 0.00% 0 0.00%
investment fund
Happy life insurance Co. Ltd.-Dividend Out 0 0.00% 0 0.00%
Happy life insurance Co. Ltd.－Self funds Out 0 0.00% 0 0.00%
Happy life insurance Co. Ltd.－Self funds Out 0 0.00% 0 0.00%
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy –back agreement dealing in reporting
period.
2.Controlling shareholder
Nature of Controlling Shareholders: Local state holding
Type: Legal person
1042023 Annual Report
Legal
Name of the
representa
Controlling Date of incorporation Organization code Principal business activities
tive/Leade
shareholder
r
Equity management organization of
asset reorganization and optimized
allocation raising funds by means
including mortgage transfer of
property rights and joint stock system
transformation project investment
operation and management traffic
Guangdong
Deng infrastructure construction highway
Communication Group June 232000 91440000723838552J
Xiaohua and railway project operation and
Co. Ltd.relevant industries technological
development application
consultation and services highway
and railway passenger and cargo
transport ship industry relevant
overseas businesses; Value added
telecommunication services.Equity in other
domestic and foreign
listed companies held
by the controlling Guangdong Communication Group Co. Ltd. holds 74.12% equity of Guangdong Yueyun Traffic Co.shareholder by means Ltd. a company listing H shares.of control and mutual
shareholding in the
reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
3．Information about the controlling shareholder of the Company
Actual controller nature：Local state owned assets management
Actual controller type：Legal person
Legal
Name of the actual
representative Date of incorporation Organization code Principal business activities
controller
/Leader
State-owned Assets As an ad hoc organization
supervision and directly under the Guangdong
administration provincial government it is
Commission of Yu Gang June 262004 114400007583361658 authorized by the Guangdong
Guangdong Provincial provincial government to
People’s Government represent the Guangdong
provincial government to
1052023 Annual Report
perform the investor's duties for
the supervised enterprises in
accordance with the law
specializing in the supervision of
state-owned assets.Equity of other
domestic/foreign listed As an ad hoc organization directly under the Guangdong provincial government it is authorized by the
company with share Guangdong provincial government to represent the Guangdong provincial government to perform the
controlling and share investor's duties for the supervised enterprises in accordance with the law specializing in the
participation by supervision of state-owned assets.controlling shareholder
in reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
The actual controller controls the company by means of trust or managing the assets in other way
□Applicable √Not applicable
4.The cumulative number of shares pledged by the controlling shareholder or the largest shareholder of the
company and its person acting in concert accounts for 80% of the number of shares held by the company
□Applicable √Not applicable
5.Particulars about other legal person shareholders with over 10% share held
√ Applicable □ Not applicable
Legal
Legal person Date of Register
person/person in Main operation business or management activities
shareholder foundation capital
charge of the unit
Highway bridge tunnel bridge traffic infrastructure
construction investment and management technical
Guangdong Highway
April 10.8 consulting leasing of road construction machinery; sales
Construction Co. Wang Kangchen
161987 billion of construction materials construction machinery
Ltd.equipment; vehicle rescue services
(operated by the branch).
1062023 Annual Report
Shangdong
Expressway
June RMB 4
Investment Hao Yu Engaged in investment activities with their own funds.
132008 billion
Development Co.Ltd.
6.Situation of Share Limitation Reduction of Controlling Shareholders Actual Controllers Restructuring Party
and Other Commitment Subjects
□Applicable √Not applicable
IV. Specific implementation of share repurchase during the reporting period
Progress in implementation of share repurchase
□ Applicable √Not applicable
Implementation progress of reducing repurchased shares by centralized bidding
□ Applicable √Not applicable
1072023 Annual Report
VIII. Situation of the Preferred Shares
□Applicable √Not applicable
The Company had no preferred shares in the reporting period.
1082023 Annual Report
IX. Corporate Bond
I. Enterprise bond
□ Applicable √ Not applicable
No such cases in the reporting period.II. Corporate bond
□ Applicable √ Not applicable
No such cases in the reporting period.
1092023 Annual Report
III. Debt financing instruments of non-financial enterprises
√Applicable □ Not applicable
1.Basic information
In RMB 10000
Bond short Bond Issue Value Bond
Bond name Due day Interest rate Servicing way Trading
name code day date balance
19 Febr Due payments once a
Guangdong Provincial Expressway Developme
Guangdong 10190 uary March March 67553.0 year The principal and the last instalment int Interbanknt Co. Ltd. 2019 first phase medium- 4%
Expresswa 0252 272 12019 12024 4 erest are paid in one lump sum on the redempt market
term notes
y MTN001 019 ion date.
20 Marc Due payments once a
Guangdong Provincial Expressway Developme March
Guangdong 10200 h March year The principal and the last instalment int Interbank
nt Co. Ltd. 2020 first phase medium- 17202 74477.8 3%
Expresswa 0367 132 172025 0 erest are paid in one lump sum on the redempt market
term notes 0
y MTN001 020 ion date.During the reporting period interest payment situation of the company
bonds（If any）
Circulation and transfer in the national inter-
Applicable trading mechanism bank bond market its listing and circulation will be carried out in accordance with the relevant regulations promulgat
ed by the National Interbank Funding Center.Whether there are risks and countermeasures for terminating listing transactions（If any)Overdue and unpaid bonds
□ Applicable √ Not applicable
1102023 Annual Report
2. Trigger and implementation of option clauses and investor protection clauses of the issuer or investor
□ Applicable √ Not applicable
3.Information of intermediary agency
Contact
Name of
Name of intermediary person of
Name of bond project Office Address signing Tel
agency intermediar
accountant
y agency
No.2 Jianguomenwai
19 Guangdong China Lianhe Credit
Street Chaoyang No Yang Ting 010-85679696
Expressway MTN001 Rating Co. Ltd.District Beijing
No.2 Jianguomenwai
20 Guangdong China Lianhe Credit
Street Chaoyang No Yang Ting 010-85679696
Expressway MTN001 Rating Co. Ltd.District Beijing
Whether the above agency changes during the reporting period
□ Yes √No
4. Use of raised funds
In RMB
Whether it is
consistent with
Operation of Rectification of
the purpose use
Total amount Unused special account for illegal use of
Name of bond project Used amount plan and other
of raised funds amount raised funds (if raised funds (if
agreements
any) any)
stipulated in the
prospectus
19 Guangdong
Expressway 680000000.00 680000000.00 0.00 No No Yes
MTN001
20 Guangdong
Expressway 750000000.00 750000000.00 0.00 No No Yes
MTN001
The raised funds are used for construction projects
□ Applicable √ Not applicable
During the reporting period the Company changed the use of funds raised from the above bonds
□ Applicable √ Not applicable
5.Adjustment of credit rating results during the reporting period
□ Applicable √ Not applicable
6 The implementation and changes of guarantee debt repayment plan and other debt repayment guarantee
measures during the reporting period and their impact on the rights and interests of bond investors
□ Applicable √ Not applicable
IV. Convertible bond
□ Applicable √ Not applicable
No such cases in the reporting period.
1112023 Annual Report
V. The loss within the scope of consolidated statements in the reporting period exceeded 10% of the net
assets at the end of the previous year
□ Applicable √ Not applicable
VI.Overdue interest-bearing debts except bonds at the end of the reporting period
□ Applicable √ Not applicable
VII.Whether there are any violations of rules and regulations during the reporting period
□ Yes √ No
VIII. Main accounting data and financial indicators of the Company in recent two years by the end of the
reporting period
In RMB10000
At the end of the reporting At the same time rate of
Items At the end of last year
period change
Current ratio 3.22 2.90 11.03%
Debt ratio 41.93% 43.91% -1.98%
Quick ratio 3.22 2.89 11.42%
At the same time rate of
Amount of this period Amount of last period
change
Net profit after deducting
170509.98131087.1130.07%
non-recurring profit and loss
EBITDA total debt ratio 56.83% 45.43% 11.40%
Time interest earned ratio 12.10 10.37 16.68%
Cash interest guarantee times 17.61 14.29 23.23%
EBITDATime interest earned
16.5014.6013.01%
ratio
Repayment of debt (%) 100% 100% ——
Payment of interest (%) 100% 100% ——
1122023 Annual Report
X. Financial Report
I. Audit report
Type of audit opinion Standard Unqualified audit opinion
Date of signature of audit report March 152024
Yong Tuo Certified Public Accountants (special general
Name of audit firm
partnership)
Names of the Certified Public Accountants Sun Xiuqing Huang Zhiyan
Auditors’ Report
I. Opinion
We have audited the financial statements of Guangdong Provincial Expressway Development Co. Ltd.(hereinafter referred to as "the Company") which comprise the balance sheet as at December 31 2023 and the
income statement the statement of cash flows and the statement of changes in owners' equity for the year then
ended and notes to the financial statements.In our opinion the attached financial statements are prepared in all material respects in accordance with
Accounting Standards for Business Enterprises and present fairly the financial position of the Company as at
December 31 2022 and its operating results and cash flows for the year then ended.II. Basis for Our Opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants in China. Our
responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. According to the Code of Ethics for Chinese CPA we are independent
of the Company in accordance with the Code of Ethics for Chinese CPA and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on these
matters. We have identified the following items as key audit items that need to be communicated in the audit report.
1. Item description
As stated in "Section V 14. Fixed Assets" and "Section VII 10. Fixed Assets" the book value of Guangdong
Expressway toll road at the end of 2023 was RMB 8468400326.52 and the depreciation amount of toll road in
2023 was RMB 974891753.54. Guangdong Expressway toll road is depreciated according to the traffic flow
method and the current depreciation amount is calculated according to the proportion of the actual traffic flow in
the current period to the total estimated remaining traffic flow. The total estimated remaining traffic flow is a
prediction of the total traffic flow of toll roads within the approved remaining toll period which is a major
accounting estimate. Therefore we determine the pricing and depreciation of toll roads as key audit items.
1132023 Annual Report
2. Audit response
In response to the above key audit matter we have implemented the following main audit procedures:
(1)Understand evaluate and test the internal control of the management of the Company on the daily
management and accounting treatment of toll roads;
(2)Check whether the actual traffic flow data applied by Guangdong Expressway Company in the
depreciation calculation of toll roads is consistent with the actual traffic flow data obtained by Guangdong
Expressway Company from external service units;
(3)Evaluate the independence and professional competence of the third-party organization employed by the
Company that carries out traffic flow forecast;
(4) Understand the methods used in traffic flow forecast reports issued by third-party organizations to
forecast the traffic flow in the future and evaluate the reliability of traffic flow forecast reports by comparing the
predicted traffic flow for the past year with the actual traffic flow for that period;
(5) Recalculate the depreciation of roads and bridges to verify the accuracy of the depreciation amount of
roads and bridges in the financial statements.IV. Other information
The management of Guangdong Expressway Company is responsible for other information. Other information
includes the information covered in the 2023 annual report of Guangdong Expressway Company but does not
include the financial statement and our audit report.Our audit opinion on the financial statements does not cover other information and we do not issue any form of
verification conclusion on other information.In combination with our audit of the financial statements our responsibility is to read other information and
consider in such process whether other information is materially inconsistent with the financial statements or the
information we learned during the audit or whether there appears to be a material misstatement.Based on the work that we have already performed if we determine that other information contains material
misstatements we should report such fact. In this regard we have nothing to report.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's management is responsible for preparing the financial statements in accordance with the
requirements of Accounting Standards for Business Enterprises to achieve a fair presentation and for designing
implementing and maintaining internal control that is necessary to ensure that the financial statements are free from
material misstatements whether due to frauds or errors.In preparing the financial statements management of the Company is responsible for assessing the Company's
ability to continue as a going concern disclosing matters related to going concern and using the going concern basis
of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic
alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
1142023 Annual Report
As part of an audit in accordance with ISAs we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or
error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery omissions
misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management of the Company.
(4) Conclude on the appropriateness of using the going concern assumption by the management of the Company
and conclude based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude
that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures
in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements including the disclosures
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements and bear all liability for the
opinion.We communicate with those charged with governance regarding among other matters the planned scope and
timing of the audit and significant audit matters including any significant deficiencies in internal control that we
identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.Yong Tuo Certified Public CPA：
Accountants Co. Ltd.(Special
Sun Xiuqing
General Partnership)
(Project partner) ：
CPA： Huang Zhiyan
Beijing China March 152024
1152023 Annual Report
II. Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by: Guangdong Provincial Expressway Development Co. Ltd.December 312023
In RMB
Items December 31 2023 January 1 2023
Current asset：
Monetary fund 4718631732.20 4290581490.78
Settlement provision
Outgoing call loan
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 139899420.24 108368797.56
Financing of receivables
Prepayments 8488165.87 7785192.95
Insurance receivable
Reinsurance receivable
Provisions of Reinsurance contracts
receivable
Other account receivable 89578207.76 34456244.64
Including：Interest receivable
Dividend receivable 1205472.90 1205472.90
Repurchasing of financial assets
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 34805.71 2042395.28
Total of current assets 4956632331.78 4443234121.21
Non-current assets：
Loans and payment on other’s behalf
disbursed
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 3095578288.00 2923305042.30
Other equity instruments investment 1534396887.63 1557303730.98
Other non-current financial assets 183856768.00 101400000.00
Property investment 2447026.45 2668144.93
Fixed assets 9010168712.92 10098252638.07
1162023 Annual Report
Items December 31 2023 January 1 2023
Construction in progress 1960092562.22 753565502.12
Production physical assets
Oil & gas assets
Use right assets 24967509.81 4077555.43
Intangible assets 221328753.00 246772471.44
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 39836115.11 129044978.46
Other non-current asset 339658212.49 8374778.84
Total of non-current assets 16412330835.63 15824764842.57
Total of assets 21368963167.41 20267998963.78
Current liabilities
Short-term loans 110085708.33 430387597.20
Loan from Central Bank
Borrowing funds
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 214450590.80 197788782.77
Advance receipts 2647230.92 2718756.97
Contract liabilities
Selling of repurchased financial assets
Deposit taking and interbank deposit
Entrusted trading of securities
Entrusted selling of securities
Employees’ wage payable 20622986.18 20660328.60
Tax payable 155123590.65 72307773.41
Other account payable 150293516.43 191167560.23
Including：Interest payable
Dividend payable 27809510.32 59994517.46
Fees and commissions payable
Reinsurance fee payable
Liabilities held for sales
Non-current liability due within 1 year 883412159.65 117011466.96
Other current liability 368676.26 500723556.23
Total of current liability 1537004459.22 1532765822.37
Non-current liabilities：
Reserve fund for insurance contracts
Long-term loan 5944716050.00 5566595350.00
Bond payable 749401333.95 1428381232.94
Including：preferred stock
Sustainable debt
Lease liability 13482202.97 150984.47
1172023 Annual Report
Items December 31 2023 January 1 2023
Long-term payable 2022210.11 2517493.12
Long-term remuneration payable to staff 0.00 0.00
Expected liabilities 0.00 0.00
Deferred income 429079908.54 61082981.63
Deferred income tax liability 284451199.04 307825916.58
Other non-current liabilities
Total non-current liabilities 7423152904.61 7366553958.74
Total of liability 8960157363.83 8899319781.11
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 783125493.70 743133557.03
Less：Shares in stock
Other comprehensive income 163568401.33 170633656.67
Special reserve
Surplus reserves 1520627456.34 1373056469.02
Common risk provision
Retained profit 5289404378.52 4698029354.09
Total of owner’s equity belong to the parent
9847531855.899075659162.81
company
Minority shareholders’ equity 2561273947.69 2293020019.86
Total of owners’ equity 12408805803.58 11368679182.67
Total of liabilities and owners’ equity 21368963167.41 20267998963.78
Legal Representative:Miao Deshan
General Manager: Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader:Yan Xiaohong
2.Parent Company Balance Sheet
In RMB
Items December 31 2023 January 12023
Current asset：
Monetary fund 2464109767.51 1813035761.84
Transactional financial assets
Derivative financial assets
Notes receivable
Account receivable 31718251.28 23817016.30
Financing of receivables
Prepayments 6668377.73 5515813.54
Other account receivable 1021305845.87 1542022671.18
Including：Interest receivable
Dividend receivable 1205472.90 36905472.90
1182023 Annual Report
Items December 31 2023 January 12023
Inventories
Contract assets
Assets held for sales
Non-current asset due within 1 year
Other current asset 111143.99
Total of current assets 3523802242.39 3384502406.85
Non-current assets：
Creditor's right investment
Other creditor's right investment
Long-term receivable
Long term share equity investment 6942986509.74 6096415643.96
Other equity instruments investment 1534396887.63 1557303730.98
Other non-current financial assets
Property investment 2194888.20 2416006.68
Fixed assets 4929287711.63 5299569148.92
Construction in progress 241492676.67 152388974.47
Production physical assets
Oil & gas assets
Use right assets 24137970.26 3069576.00
Intangible assets 124092435.10 132991895.23
Development expenses
Goodwill
Long-germ expenses to be amortized
Deferred income tax asset 33747359.73 123579950.33
Other non-current asset
Total of non-current assets 13832336438.96 13367734926.57
Total of assets 17356138681.35 16752237333.42
Current liabilities
Short-term loans
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Account payable 119520338.64 94446623.15
Advance receipts 250984.74 250984.75
Contract Liabilities
Employees’ wage payable 7453993.89 8103399.09
Welfare payable 8185707.22 4643917.73
Including：Tax payable 374738279.30 362996135.95
Including：Interest payable
Dividend payable 27809510.32 25694517.46
Liabilities held for sales
Non-current liability due within 1 year 824960532.88 116904509.53
Other current liability 52275.94 33596.70
Total of current liability 1335162112.61 587379166.90
Non-current liabilities：
1192023 Annual Report
Items December 31 2023 January 12023
Long-term loan 5464096050.00 5552070350.00
Bond payable 749401333.95 1428381232.94
Including：preferred stock
Sustainable debt
Lease liability 13405284.96
Long-term payable 2022210.11 2517493.12
Long-term remuneration payable to staff
Expected liabilities
Deferred income 3555984.68 6838432.16
Deferred income tax liability 61555338.93 61985198.42
Other non-current liabilities
Total non-current liabilities 6294036202.63 7051792706.64
Total of liability 7629198315.24 7639171873.54
Owners’ equity
Share capital 2090806126.00 2090806126.00
Other equity instruments
Including：preferred stock
Sustainable debt
Capital reserves 975003604.00 934908293.69
Less：Shares in stock
Other comprehensive income 163568401.33 170633656.67
Special reserve
Surplus reserves 1340655188.78 1193084201.46
Retained profit 5156907046.00 4723633182.06
Total of owners’ equity 9726940366.11 9113065459.88
Total of liabilities and owners’ equity 17356138681.35 16752237333.42
1202023 Annual Report
3.Consolidated Income statement
In RMB
Items 2023 2022
I. Income from the key business 4879066948.19 4168634113.98
Incl：Business income 4879066948.19 4168634113.98
Interest income
Insurance fee earned
Fee and commission received
II. Total business cost 2078327690.70 2005705864.79
Incl：Business cost 1740818258.17 1586349035.48
Interest expense
Fee and commission paid
Insurance discharge payment
Net claim amount paid
Net amount of withdrawal of insurance contract reserve
Insurance policy dividend paid
Reinsurance expenses
Business tax and surcharge 23027906.77 22267823.63
Sales expense
Administrative expense 189461539.01 191426081.46
R & D costs 3245205.00 14591773.12
Financial expenses 121774781.75 191071151.10
Including：Interest expense 214338558.69 238444227.57
Interest income 94065812.39 47404858.97
Add: Other income 11606155.53 13727651.88
Investment gain（“-”for loss） 312359708.13 254893164.16
Incl: investment gains from affiliates 215712728.62 194108143.09
Financial assets measured at amortized cost cease to be recognized as income
Gains from currency exchange
Net exposure hedging income
Changing income of fair value 2456768.00 10400000.00
Credit impairment loss -123166054.97 -98397398.38
Impairment loss of assets -10443015.96 0.00
Assets disposal income 0.00 478663.58
III. Operational profit（“-”for loss） 2993552818.22 2344030330.43
Add ：Non-operational income 4745630.19 10048941.28
Less: Non-operating expense 21397141.51 12263294.52
IV. Total profit(“-”for loss) 2976901306.90 2341815977.19
Less：Income tax expenses 714561170.84 547955753.85
V. Net profit 2262340136.06 1793860223.34
(I) Classification by business continuity
1.Net continuing operating profit 2262340136.06 1793860223.34
2.Termination of operating net profit
(II) Classification by ownership
1212023 Annual Report
Items 2023 2022
1.Net profit attributable to the owners of parent company 1633811033.68 1276341322.98
2.Minority shareholders’ equity 628529102.38 517518900.36
VI. Net after-tax of other comprehensive income -7065255.34 -21543809.67
Net of profit of other comprehensive income attributable to owners of the parent compan -7065255.34 -21543809.67
y.（I）Other comprehensive income items that will not be reclassified into gains/losses in
-17180132.51-14349348.86
the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be reclassified
into profit or loss.
3. Changes in the fair value of investments in other equity instruments -17180132.51 -14349348.86
4. Changes in the fair value of the company’s credit risks
5.Other（II）
10114877.17-7194460.81
Other comprehensive income that will be reclassified into profit or loss.
1.Other comprehensive income under the equity method investee can be reclassified into 10114877.17 -7194460.81
profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of financial assets
4.Allowance for credit impairments in investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
Net of profit of other comprehensive income attributable to Minority shareholders’
equity
VII. Total comprehensive income 2255274880.72 1772316413.67
Total comprehensive income attributable to the owner of the parent company 1626745778.34 1254797513.31
Total comprehensive income attributable minority shareholders 628529102.38 517518900.36
VIII. Earnings per share
（I）Basic earnings per share 0.78 0.61
(II)Diluted earnings per share 0.78 0.61
The current business combination under common control the net profits of the combined party before achieved
net profit of RMB 0.00 last period the combined party realized RMB0.00.Legal Representative: Miao Deshan
General Manager：Wang Chunhua
Person in charge of accounting：Lu Ming
Accounting Dept Leader: Yan Xiaohong
1222023 Annual Report
4. Income statement of the Parent Company
In RMB
Items 2023 2022
I. Income from the key business 1535585466.23 1310779669.18
Less：Business cost 610980785.63 589634400.70
Business tax and surcharge 8076686.24 7388300.22
Sales expense
Administrative expense 119191042.73 115967177.07
R & D expense 3245205.00 11081898.00
Financial expenses 214571226.30 191962721.38
Including：Interest expenses 240441217.03 229477883.09
Interest income 27292545.80 37446280.48
Add：Other income 4252550.47 4058931.45
Investment gain（“-”for loss） 1044240085.29 1173266601.98
Including: investment gains from affiliates 215529559.56 183837934.31
Financial assets measured at amortized cost cease to be recognized as income
Net exposure hedging income
Changing income of fair value
Credit impairment loss
Impairment loss of assets
Assets disposal income 478663.58
II. Operational profit（“-”for loss） 1628013156.09 1572549368.82
Add ：Non-operational income 1232923.08 1611971.54
Less：Non -operational expenses 9053337.37 1417002.95
III. Total profit(“-”for loss) 1620192741.80 1572744337.41
Less：Income tax expenses 144482868.61 96661666.54
IV. Net profit 1475709873.19 1476082670.87
1.Net continuing operating profit 1475709873.19 1476082670.87
2.Termination of operating net profit
V. Net after-tax of other comprehensive income -7065255.34 -21543809.67
（I）Other comprehensive income items that will not be reclassified into gains/losses in
-17180132.51-14349348.86
the subsequent accounting period
1.Re-measurement of defined benefit plans of changes in net debt or net assets
2.Other comprehensive income under the equity method investee can not be reclassified
into profit or loss.
3. Changes in the fair value of investments in other equity instruments -17180132.51 -14349348.86
4. Changes in the fair value of the company’s credit risks
5.Other
(II)Other comprehensive income that will be reclassified into profit or loss 10114877.17 -7194460.81
1.Other comprehensive income under the equity method investee can be reclassified into 10114877.17 -7194460.81
profit or loss.
2. Changes in the fair value of investments in other debt obligations
3. Other comprehensive income arising from the reclassification of financial assets
1232023 Annual Report
4.Allowance for credit impairments in investments in other debt obligations
5. Reserve for cash flow hedges
6.Translation differences in currency financial statements
7.Other
VI. Total comprehensive income 1468644617.85 1454538861.20
VII. Earnings per share
（I）Basic earnings per share
(II)Diluted earnings per share
1242023 Annual Report
5. Consolidated Cash flow statement
In RMB
Items 2023 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 4951961030.30 4277130557.35
Net increase of customer deposits and capital kept for brother
company
Net increase of loans from central bank
Net increase of inter-bank loans from other financial bodies
Cash received against original insurance contract
Net cash received from reinsurance business
Net increase of client deposit and investment
Cash received from interest commission charge and
commission
Net increase of inter-bank fund received
Net increase of repurchasing business
Net cash received by agent in securities trading
Tax returned
Other cash received from business operation 562750580.32 120557326.45
Sub-total of cash inflow 5514711610.62 4397687883.80
Cash paid for purchasing of merchandise and services 356711777.61 342864874.07
Net increase of client trade and advance
Net increase of savings in central bank and brother company
Cash paid for original contract claim
Net increase in financial assets held for trading purposes
Net increase for Outgoing call loan
Cash paid for interest processing fee and commission
Cash paid to staffs or paid for staffs 495860299.67 479860302.18
Taxes paid 732384642.28 695593923.86
Other cash paid for business activities 97969327.59 127342225.31
Sub-total of cash outflow from business activities 1682926047.15 1645661325.42
Net cash generated from /used in operating activities 3831785563.47 2752026558.38
II. Cash flow generated by investing
Cash received from investment retrieving 80429567.10 0.00
Cash received as investment gains 140568804.28 168700001.50
Net cash retrieved from disposal of fixed assets intangible assets
116722.53805831.00
and other long-term assets
Net cash received from disposal of subsidiaries or other
0.0028514496.27
operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 221115093.91 198020328.77
Cash paid for construction of fixed assets intangible assets and
1539385895.45875179014.01
other long-term assets
Cash paid as investment 166330000.00 321341000.00
1252023 Annual Report
Items 2023 2022
Net increase of loan against pledge
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities 182544.13 0.00
Sub-total of cash outflow due to investment activities 1705898439.58 1196520014.01
Net cash flow generated by investment -1484783345.67 -998499685.24
III.Cash flow generated by financing
Cash received as investment 175000000.00 0.00
Including: Cash received as investment from minor shareholders 175000000.00 0.00
Cash received as loans 675525000.00 2320000000.00
Other financing –related cash received 0.00 557350200.00
Sub-total of cash inflow from financing activities 850525000.00 2877350200.00
Cash to repay debts 1038658425.00 1294413150.00
Cash paid as dividend profit or interests 1727111491.46 1993666552.33
Including: Dividend and profit paid by subsidiaries to minor
569575174.55556851982.19
shareholders
Other cash paid for financing activities 14094281.84 14280453.65
Sub-total of cash outflow due to financing activities 2779864198.30 3302360155.98
Net cash flow generated by financing -1929339198.30 -425009955.98
IV. Influence of exchange rate alternation on cash and cash
-693816.83988123.62
equivalents
V.Net increase of cash and cash equivalents 416969202.67 1329505040.78
Add: balance of cash and cash equivalents at the beginning of term 4284688231.33 2955183190.55
VI ..Balance of cash and cash equivalents at the end of term 4701657434.00 4284688231.33
1262023 Annual Report
6. Cash Flow Statement of the Parent Company
In RMB
Items 2023 2022
I.Cash flows from operating activities
Cash received from sales of goods or rending of services 1569576641.63 1347316010.13
Tax returned
Other cash received from business operation 178378550.98 47431112.11
Sub-total of cash inflow 1747955192.61 1394747122.24
Cash paid for purchasing of merchandise and services 126343176.79 74042300.65
Cash paid to staffs or paid for staffs 161391920.54 155280659.59
Taxes paid 100391735.11 49667582.04
Other cash paid for business activities 152266887.57 1856029086.90
Sub-total of cash outflow from business activities 540393720.01 2135019629.18
Net cash generated from /used in operating activities 1207561472.60 -740272506.94
II. Cash flow generated by investing
Cash received from investment retrieving 328527584.98
Cash received as investment gains 933027040.76 1121551007.37
Net cash retrieved from disposal of fixed assets intangible assets
18092.53566983.00
and other long-term assets
Net cash received from disposal of subsidiaries or other
operational units
Other investment-related cash received
Sub-total of cash inflow due to investment activities 933045133.29 1450645575.35
Cash paid for construction of fixed assets intangible assets and
113805594.78155607960.52
other long-term assets
Cash paid as investment 163250000.00 344250000.00
Net cash received from subsidiaries and other operational units
Other cash paid for investment activities
Sub-total of cash outflow due to investment activities 277055594.78 499857960.52
Net cash flow generated by investment 655989538.51 950787614.83
III. Cash flow generated by financing
Cash received as investment
Cash received as loans 1890000000.00
Other financing –related ash received
Sub-total of cash inflow from financing activities 1890000000.00
Cash to repay debts 67189300.00 726743150.00
Cash paid as dividend profit or interests 1130578984.77 1408387271.32
Other cash paid for financing activities 14014903.84 14173175.65
Sub-total of cash outflow due to financing activities 1211783188.61 2149303596.97
Net cash flow generated by financing -1211783188.61 -259303596.97
IV. Influence of exchange rate alternation on cash and cash
-693816.83988123.62
equivalents
V.Net increase of cash and cash equivalents 651074005.67 -47800365.46
Add: balance of cash and cash equivalents at the beginning of term 1811814561.84 1859614927.30
1272023 Annual Report
Items 2023 2022
VI ..Balance of cash and cash equivalents at the end of term 2462888567.51 1811814561.84
1282023 Annual Report
7. Consolidated Statement on Change in Owners’ Equity
Amount in this period
In RMB
2023
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com Minor
: Other Total of
Items Speciali mon sharehold
Share Prefer Capital Shar Comprehe Surplus Retained Oth owners’Sustain Oth zed risk Subtotal ers’
Capital red reserves es in nsive reserves profit er equity
able er reserve provis equity
stock stoc Income
debt ion
k
I.Balance at the end of last year 20908061 7431335 170633656. 13730564 46980293 90756591 22930200 113686791
26.0057.036769.0254.0962.8119.8682.67
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of 20908061 7431335 170633656. 13730564 46980293 90756591 22930200 113686791
current year 26.00 57.03 67 69.02 54.09 62.81 19.86 82.67
III.Changed in the current year 3999193 - 14757098 59137502 77187269 26825392 104012662
6.677065255.347.324.433.087.830.91
（1）Total comprehensive income - 16338110 16267457 62852910 225527488
7065255.3433.6878.342.380.72（II）Investment or decreasing of 4009288 40092886. 17500000 215092886.capital by owners 6.12 12 0.00 12
1．Ordinary Shares invested by sha 17500000 175000000.
reholders 0.00 00
2．Holders of other equity instrum
ents invested capital
3．Amount of shares paid and
accounted as owners’ equity
4．Other 4009288 40092886. 40092886.1
1292023 Annual Report
2023
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com Minor
: Other Total of
Items Speciali mon sharehold
Share Prefer Capital Shar Comprehe Surplus Retained Oth owners’Sustain Oth zed risk Subtotal ers’
Capital red reserves es in nsive reserves profit er equity
able er reserve provis equity
stock stoc Income
debt ion
k
6.12122
----（III）Profit allotment 14757098 10424360 89486502 53527517 143014019
7.32
09.251.934.556.48
-
1.Providing of surplus reserves 14757098 14757098
7.32
7.32
2.Providing of common risk
provisions
3．Allotment to the owners (or - - - -
894865028948650253527517143014019
shareholders) 1.93 1.93 4.55 6.48
4．Other
(IV) Internal transferring of
owners’ equity
1. Capitalizing of capital reserves
(or to capital shares)
2. Capitalizing of surplus reserves
(or to capital shares)
3．Making up losses by surplus
reserves.
4.Change amount of defined benefit
plans that carry forward
Retained earnings
1302023 Annual Report
2023
Owner’s equity Attributable to the Parent Company
Other Equity instrument Less
Com Minor
: Other Total of
Items Speciali mon sharehold
Share Prefer Capital Shar Comprehe Surplus Retained Oth owners’Sustain Oth zed risk Subtotal ers’
Capital red reserves es in nsive reserves profit er equity
able er reserve provis equity
stock stoc Income
debt ion
k
5．Other comprehensive income
carry-over retained earnings
6．Other
(V). Special reserves
1. Provided this year
2．Used this term
-（VI）Other 100949.4 -100949.45 -100949.45
5
IV. Balance at the end of this term 20908061 7831254 163568401. 15206274 52894043 98475318 25612739 124088058
26.0093.703356.3478.5255.8947.6903.58
1312023 Annual Report
Amount in last year
In RMB
2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Les
s:
Specia Commo Minor
Items Sus Sha Other Total of
Share Prefe tai Capital lized Surplus n risk Retained shareholder
Othe res Comprehens Other Subtotal owners’ equityCapital rred nab reserves reserv reserves provisio profit s’ equity
r in ive Income
stock le e nstoc
deb k
t
I.Balance at the end 20908061 7134605 1225375330. 47606185 8982437 233855117
192177466.3411320989158.13
of last year 26.00 18.49 56 43.78 985.17 2.96
Add: Change of
accounting 510117.6510117.61 330.73 510448.34
policy
Correcting of
previous errors
Other
II.Balance at the
beginning of 20908061 7134605 1225375330. 47611286 8982948 233855150192177466.34 11321499606.47
26.0018.495661.39102.783.69
current year
III.Changed in the - -2967303 147681138.4 9271106
-21543809.6763099307.45531483.847179576.20
current year 8.54 6 0.0330 3
（1）Total 12763413 1254797 517518900.
-21543809.671772316413.67
comprehensive 22.98 513.31 36
1322023 Annual Report
2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Les
s:
Sus Specia Commo MinorItems Sha Other Total of
Share Prefe tai Capital lized Surplus n risk Retained shareholder
Othe res Comprehens Other Subtotal owners’ equityCapital rred nab reserves reserv reserves provisio profit s’ equity
r in ive Income
stock le e nstoc
deb k
t
income（II）Investment
or decreasing of
capital by owners
1．Ordinary Shares
invested by shareh
olders
2．Holders of other
equity instruments
invested capital
3．Amount of
shares paid and
accounted as
owners’ equity
4．Other（III）Profit - - -147681138.4
133944061191759591151982.-1782911474.01
allotment 6 30.28 491.82 19
1.Providing of -147681138.4
147681138
surplus reserves 6 .46
1332023 Annual Report
2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Les
s:
Sus Specia Commo MinorItems Sha Other Total of
Share Prefe tai Capital lized Surplus n risk Retained shareholderres Comprehens Other Subtotal owners’ equity
Capital Otherred nab reserves reserv reserves provisio profit s’ equity
r in ive Income
stock le e nstoc
deb k
t
2.Providing of
common risk
provisions
3．Allotment to the - - -
owners (or 11917594 1191759 591151982. -1782911474.01
shareholders) 91.82 491.82 19
4．Other
(IV) Internal
transferring of
owners’ equity
1. Capitalizing of
capital reserves (or
to capital shares)
2. Capitalizing of
surplus reserves (or
to capital shares)
3．Making up
losses by surplus
reserves.
4.Change amount
1342023 Annual Report
2022
Owner’s equity Attributable to the Parent Company
Other Equity
instrument Les
s:
Items Sus
Specia Commo Minor
Sha Other Total of
Share Prefe tai Capital lized Surplus n risk Retained shareholder
Othe res Comprehens Other Subtotal owners’ equityCapital rred nab reserves reserv reserves provisio profit s’ equity
r in ive Income
stock le e nstoc
deb k
t
of defined benefit
plans that carry
forward
Retained earnings
5．Other
comprehensive
income carry-over
retained earnings
6．Other
(V). Special
reserves
1. Provided this
year
2．Used this term
VI Other 2967303 2967303 28101598.0（ ） 57774636.54
8.548.540
IV. Balance at the 20908061 7431335 1373056469. 46980293 9075659 229302001
170633656.6711368679182.67
end of this term 26.00 57.03 02 54.09 162.81 9.86
1352023 Annual Report
8.Statement of change in owner’s Equity of the Parent Company
Amount in this period
In RMB
2023
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained OthShare capital Oth Comprehen zed owners’
ed Sustaina
er reserves es in reserves profit er
stock ble debt sive Income reserve equitystoc
k
I.Balance at the end of last year 209080612 93490829 17063365 119308420 472363318 911306545
6.003.696.671.462.069.88
Add: Change of accounting policy
Correcting of previous errors
Other
II.Balance at the beginning of current 209080612 93490829 17063365 119308420 472363318 911306545
year 6.00 3.69 6.67 1.46 2.06 9.88
-
III.Changed in the current year 40095310. 147570987. 433273863. 613874906.7065255.3
31329423
4
-
I Total comprehensive income 147570987 146864461（ ） 7065255.3
3.197.85
4
(II) Investment or decreasing of capital 40092886. 40092886.1
by owners 12 2
1．Ordinary Shares invested by shareh
olders
2．Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other 40092886. 40092886.1
1362023 Annual Report
2023
Other Equity instrument Less
:
Other Speciali Total of
Items
Share capital Preferr
Capital Shar Surplus Retained Oth
Oth Comprehen zed owners’
ed Sustaina
er reserves es in reserves profit er
stock ble debt sive Income reserve equitystoc
k
122
--
III Profit allotment 147570987.（ ） 104243600 894865021.
32
9.2593
-
1.Providing of surplus reserves 147570987. 147570987.
32
32
2．Allotment to the owners (or - -
894865021.894865021.
shareholders) 93 93
3．Other
(IV) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3．Making up losses by surplus
reserves.
4.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income carry-
over retained earnings
6．Other
1372023 Annual Report
2023
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained OthShare capital Oth Comprehen zed owners’
ed Sustaina
er reserves es in reserves profit er
stock ble debt sive Income reserve equitystoc
k
(V) Special reserves
1. Provided this year
2．Used this term（VI）Other 2424.19 2424.19
IV. Balance at the end of this term 209080612 97500360 16356840 134065518 515690704 972694036
6.004.001.338.786.006.11
1382023 Annual Report
Amount in last year
In RMB
2022
Other Equity instrument Less
:
Other Speciali Total of
Items Preferr Capital Shar Surplus Retained OthShare Capital Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er
stock ble debt sive Income reserve equitystoc
k
I.Balance at the end of last year 209080612 93485128 19217746 104540306 458648201 884971995
6.005.516.343.006.106.95
Add: Change of accounting policy 509125.37 509125.37
Correcting of previous errors
Other
II.Balance at the beginning of current 209080612 93485128 19217746 104540306 458699114 885022908
year 6.00 5.51 6.34 3.00 1.47 2.32
-
III.Changed in the current year 147681138. 136642040. 262836377.57008.18 21543809.
465956
67
-
（I）Total comprehensive income 147608267 14545388621543809.
0.871.20
67
(II) Investment or decreasing of capital
by owners
1．Ordinary Shares invested by shareh
olders
2．Holders of other equity instruments
invested capital
3.Amount of shares paid and accounted
as owners’ equity
4．Other（III）Profit allotment 147681138. - -
1392023 Annual Report
2022
Other Equity instrument Less
:
Other Speciali Total of
Items Capital Shar Surplus Retained Oth
Share Capital Preferr Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er
stock ble debt sive Income reserve equitystoc
k
46133944063119175949
0.281.82
-
1.Providing of surplus reserves 147681138. 147681138.
46
46
2．Allotment to the owners (or - -
119175949119175949
shareholders) 1.82 1.82
3．Other
(IV) Internal transferring of owners’
equity
1. Capitalizing of capital reserves (or to
capital shares)
2. Capitalizing of surplus reserves (or
to capital shares)
3．Making up losses by surplus
reserves.
4.Change amount of defined benefit
plans that carry forward
Retained earnings
5．Other comprehensive income carry-
over retained earnings
6．Other
(V) Special reserves
1. Provided this year
1402023 Annual Report
2022
Other Equity instrument Less
:
Other Speciali Total of
Items
Share Capital Preferr
Capital Shar Surplus Retained Oth
Oth Comprehen zed owners’
ed Sustaina reserves es in reserves profit er
er
stock ble debt sive Income reserve equitystoc
k
2．Used this term（VI）Other 57008.18 57008.18
IV. Balance at the end of this term 209080612 93490829 17063365 119308420 472363318 911306545
6.003.696.671.462.069.88
1412023 Annual Report
III. Company Profile
1）. Basic information of the IPO and share capital of the company
1.The Company was established in February 1993 which was originally named as Guangdong Fokai
Expressway Co. Ltd. On June 30 1993 it was renamed as Guangdong Provincial Expressway Development
Co. Ltd. after reorganization pursuant to the approval of the Office of Joint Examination Group of
Experimental Units of Share Holding System with YLSB (1993)No. 68 document. The share capital structure
after reorganization is as follows:
Composition of state-owned shares: The appraised net value of state-owned assets of Guangdong Jiujiang
Bridge Co. and Guangfo Expressway Co. Ltd. as of January 31 1993 confirmed by Guangdong State-owned
Asset Management Dept. i.e.RMB 418.2136 million was converted into 155.025 million shares. Guangdong
Expressway Co. invested cash of RMB 115 million to subscribe for 35.9375 million shares. Other legal persons
invested cash of RMB 286.992 million to subscribe for 89.685 million shares. Staff of the Company invested
RMB 87.008 million to subscribe for 27.19 million shares. The total is RMB 307.8375 million shares.
2． Pursuant to the approval of Guangdong Economic System Reform Committee and Guangdong Securities
Regulatory Commission with YTG (1996) No. 67 document part of the shareholders of non-state-owned legal
person shares transferred 20 million non-state-owned legal person shares to Malaysia Yibao Engineering Co.Ltd. in June 1996.
3. Pursuant to the approval of Securities Commission under the State Council with WF (1996) No. 24 approval
document and that of Guangdong Economic System Reform Committee with YTG (1996) No. 68 document
the Company issued 135 million domestically listed foreign investment shares (B shares) to overseas investors
at the price of HKD 3.54 (equivalent to RMB 3.8) with the par value of each share being RMB 1 during June to
July 1996.
4. Pursuant to the reply of the Ministry of Foreign Trade and Economic Cooperation of the People’ s Republic
of China with (1996) WJMZYHZ No. 606 document the Company was approved to be a foreign-invested joint
stock company limited.
5． The Company distributed dividends and capitalized capital common reserve for the year 1996 in the
following manner: The Company paid 1.7 bonus shares f or each 10 shares and capitalized capital common
reserve on 3.3-for-10 basis.
6. Pursuant to the approval of China Securities Regulatory Committee (CSRC) with ZJFZ (1997) No. 486 and
No. 487 document the Company issued 100 million public shares (A shares) at the price of RMB 5.41 in term
of “payable in full on application pro-rate placing and subject to refund” with the par value of each share being
RMB 1 in January 1998.
7． In accordance with the Resolutions of the 1999 Shareholders’ General Meeting of the Company and
pursuant to the approval of Guangzhou Securities Regulatory Office under CSRC with GZZJH (2000) No. 99
and that of CSRC with ZJGSZ (2000) No. 98 the Company offered 3 Rights for every 10 shares of 764.256249
million shares at the price of RMB 11 per Right.73822250 ordinary shares were actually placed to all .
8. Pursuant to the reply of the General Office of the People’ s Government of Guangdong Province with YBH
(2000) No. 574 document the state-owned shares were transferred to Guangdong Communication Group Co.
Ltd. (Group Co.) for holding and management without compensation.
1422023 Annual Report
9.Pursuant to the approval of Shenzhen Stock Exchange 53.0205 million staff shares of the Company (132722
shares held by directors supervisors and senior executives are temporarily frozen) were listed on February 5
2001.
10.In accordance with the resolutions of 2000 annual shareholders’ general meeting the Company capitalized
capital common reserve into 419039249 shares on 5-for-10 basis with the total share capital as of the end of
2000 i.e. 838078499 shares as base. The date of stock right registration was May 21 2001. The ex-right date
was May 22 2001.
11．On March 8 2004As approved by China Securities Regulatory Commission by document Zheng-Jian-
Gong-Si-Zi [2003]No.3 the 45000000 non-negotiable foreign shares were placed in Shenzhen Stock
12. On December 21 2005 the Company's plan for share holding structure reform was voted through at the
shareholders' meeting concerning A shares. On January 26 2006 The Ministry of Commerce of PRC issued
“The approval on share converting of Guangdong Provincial Expressway Development Co. Ltd.” to approvethe share equity relocation and transformation. On October 9 2006 according to the “Circular aboutimplementing of share equity relocation and relative trading” issued by Shenzhen Stock Exchange the
abbreviation ID of the Company’s A shares was restored from “G-Expressway” “Expressway A”.
13.Upon the approval document of CSRC No.230-2016 Zheng Jian Xu ke-Approval of the Share-Issuing to
Parties such as Guangdong Provincial Expressway Co. Ltd to Purchase Assets and Raise Matching Funds by
Guangdong Provincial Expressway Development Co. Ltd in June 2016 the company issued 33355263 shares
and paid RMB 803.50 million to Guangdong Provincial Expressway Co. Ltd for purchasing the 25% stake of
Guangdong Provincial Fokai Expressway Co. Ltd held by Guangdong Provincial Expressway Co. Ltd; and
issued 466325020 shares to Guangdong Provincial Highway Construction Co. Ltd for purchasing the 100%
stake of Guangzhou Guangzhu Traffic Investment Management Co. Ltd held by Guangdong Provincial
Highway Construction Co. Ltd. On June 21 2016 the company directionally issued 334008095 A-shares to
Yadong Fuxing Yalian Investment Co.Ltd Tibet Yinyue Investment Management Co.Ltd and Guangfa
Securities Co.Ltd. The issuance of shares have been registered on July 7 2016 the new shares will be listed on
July 8 2016.
2）. Company's registered place and headquarters address
Company name：Guangdong Provincial Expressway Development Co. Ltd.Registration placeNo.85 Baiyun Road Yuexiu District Guangzhou.Headquarters Office ：45-46/F Litong Plaza No.32 Zhujiang East Road Zhujiang New City Tihe Disrtict
Guangzhou
3）. Business nature and main business activities
Industry and main products of the company: highway management and maintenance.General business items: investment construction charging maintenance and service management of expressways
grade roads and bridges; Automobile rescue service maintenance and cleaning; Parking lot charges; Design
production release and agency of all kinds of advertisements at home and abroad; Land development along the
highway; Warehousing business; Intelligent transportation technology research and development and service;
Equity investment management and consultation. (Projects that must be approved according to law can be
operated only after being approved by relevant departments).The Company is mainly engaged in tolling and maintenance of Guangfo Expressway Fokai ExpresswayJingzhu
Expressway Guangzhu Section and Guanghui Expressway investment in technological industries
1432023 Annual Report
and provision of relevant consultaion while investing in Shenzhen Huiyan Expressway Co. Ltd. Guangdong
Jiangzhong Expressway Co.Ltd. Zhaoqing Yuezhao Expressway
Co. Ltd.Ganzhou Kangda Expressway Ganzhou Gankang Expressway Co. Ltd. Guangdong Yueke Science
and Technology Microfinance Co. Ltd. Guangdong Guangle Expressway Co.Ltd. Guoyuan Securities Co. Ltd
Hunan Lianzhi Technology Co. Ltd.and SPIC Yuetong Qiyuan Chip Power Technology Co. Ltd.
4）. Scope and changes of consolidated financial statements in the current period
(1) Scope of current consolidated financial statements
The consolidated scope of the current financial statements invovles Yuegao Capital Holding (Guangzhou) Co.Ltd. its holding subsidiaries Guangfo Expressway Co. Ltd. Jingzhu Expressway Guangzhu Section Co. Ltd. and
Guanghui Expressway Co. Ltd..
(2) Changes in the scope of consolidated financial statements in the current period
None
5）. Approval and submission date of financial report
The financial statements have been authorized for issuance of the Board of Directors of the Company on March
152024.
IV. Basis for the preparation of financial statements
1.Preparation basis
The financial statements of the Company have been prepared on basis of going concern in conformity with
Chinese Accounting Standards for Business Enterprises and the Accounting Systems for Business Enterprises
issued by the Ministry of Finance of People’s Republic of China (Ministry of Finance issued order No.33 the
Ministry of Finance revised order No.76) on February 15 2006 and revised Accounting Standards (order 42 of
the Ministry of Finance) and Compilation Rules for Information Disclosure by Companies Offering Securities to
the Public No.15 – General Provisions on Financial Reports (2023 Revision) issued by the China Securities
Regulatory Commission (CSRC).According to the relevant accounting regulations in Chinese Accounting Standards for Business Enterprises the
Company has adopted the accrual basis of accounting. Held-for-sale non-current assets are measured at the lower
of its book value at its classification date and fair value minus expected disposal costs. Where assets are impaired
provisions for asset impairment are made in accordance with relevant requirements
2.Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates are indicated as follows:
None
1442023 Annual Report
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company are recognized and measured in accordance with the regulations in the
Chinese Accounting Standards for Business Enterprises and they give a true and fair view of the financial
position business result and cash flow of the Company.
2. Accounting period
The accounting period of the Company is classified as interim period and annual period. Interim period refers to
the reporting period shorter than a complete annual period. The accounting period of the Company is the calendar
year from January 1 to December 31.
3.Operating cycle
The normal operating cycle refers to the period from the time when the Group purchases assets for processing to
the time when cash or cash equivalents are realized. The Company takes 12 months as a business cycle and uses
it as a criterion for liquidity classification of assets and liabilities.
4.Standard currency for bookkeeping
The Company adopts CNY to prepare its functional statements.
5.Accountings for Business Combinations under the Same Control & Business Combinations not under the Same
Control
1.Business Combinations under the Same Control
If business participating in the combination are ultimately controlled by the same party or parties before and after
the combination and the control is not temporary it is an business combination under the same control. Usually
business combination under the same control refers to the combination between business within the same business
except which it is generally not regarded as business combination under the same control.The assets and liabilities obtained by the Company as the combining party in the business combination shall be
measured according to the book value of the combined party in the consolidated financial statements of the
ultimate controlling party on the combination date. For the long-term equity investment formed by holding
combination under the same control the company takes the share of the book owner's equity of the combined
party on the combination date as the initial investment cost for forming the long-term equity investment. See the
long-term equity investment for relevant accounting treatment; The assets and liabilities obtained by absorption
and combination under the same control shall be recorded by the Company according to the original book value of
the related assets and liabilities in the combined party. The company adjusts the capital reserve according to the
difference between the book value of the net assets obtained and the book value of the combination consideration
paid (or the total par value of the issued shares); If the capital reserve is insufficient to offset the retained earnings
shall be adjusted.All directly related expenses incurred by the Company as a combining party for business combination including
audit fees evaluation fees legal service fees etc. are included in the current profits and losses when incurred.Fees and commissions paid for bonds issued by enterprises or other debts shall be included in the initial
measurement amount of bonds and other debts issued. Fees commissions and other expenses incurred in issuing
equity securities in business combination shall be offset against the premium income of equity securities and if
the premium income is insufficient to offset the retained earnings shall be offset.If the holding under the same control is combined to form a parent-subsidiary relationship the parent company
shall prepare consolidated financial statements on the consolidation date including consolidated balance sheet
consolidated income statement and consolidated cash flow statement.
1452023 Annual Report
For the consolidated balance sheet the book value of the combined party in the consolidated financial statements
of the ultimate controlling party shall be incorporated into the consolidated financial statements and the
transactions between the combining party and the combined party on the consolidation date and the previous
period shall be regarded as internal transactions and offset according to the relevant principles of "Consolidated
Financial Statements"; The consolidated income statement and cash flow statement include the net profit and cash
flow realized by the combining party and the combined party from the beginning of the current consolidation
period to the consolidation date and involve the cash flow generated by the transactions and internal transactions
between the two parties in the current period which shall be offset according to the relevant principles of the
consolidated financial statements.
2. If the parties involved in the combination are not ultimately controlled by the same party or parties before and
after the combination it is a business combination not under the same control.Business Combinations not under the Same Control
Determine the cost of business combination: the cost of business combination includes the fair value of cash or
non-cash assets paid by the purchaser for business combination debts issued or assumed and equity securities
issued on the purchase date.In the business combination not under the same control the intermediary expenses such as auditing legal services
evaluation and consultation and other related management expenses incurred by the purchaser for the business
combination shall be included in the current profits and losses when they occur; Transaction costs of equity
securities or debt securities issued by the purchaser as combination consideration shall be included in the initial
recognized amount of equity securities or debt securities.For the long-term equity investment obtained by holding combination not under the same control the company
takes the combination cost determined on the purchase date (excluding cash dividends and profits that should be
collected from the investee) as the initial investment cost for the long-term equity investment of the purchaser; All
identifiable assets and liabilities obtained by absorption and combination under different control that meet the
recognition conditions shall be recognized as assets and liabilities of the enterprise at fair value on the date of
purchase. If the Company takes non-monetary assets as consideration to obtain the control right of the purchaser
or various identifiable assets and liabilities the difference between the fair value of the relevant non-monetary
assets on the purchase date and their book value shall be taken as the disposal profit and loss of the assets and
recorded in the income statement of the current consolidation period.In a business combination not under the same control the difference between the cost of business combination
and the fair value share of identifiable net assets of the purchaser obtained in the combination is recognized as
goodwill; In the case of absorption and combination the difference is recognized as goodwill in the individual
financial statements of the parent company; In the case of holding combination the difference is listed as goodwill
in the consolidated financial statements.The cost of business combination is less than the difference between the fair value share of identifiable net assets
acquired during the combination which is included in the profits and losses (non-operating income) of the current
combination period after review by the Company. In the case of absorption and combination the difference is
included in the individual income statement of the parent company in the current combination period; In the case
of holding combination the difference is included in the consolidated income statement of the current
combination period.If the business combination not under the same control realized step by step through multiple exchange
transactions is a package transaction each transaction will be treated as a transaction to obtain control rights; If it
is not a package transaction the equity of the purchased party held before the purchase date shall be re-measured
according to the fair value of the equity on the purchase date and the difference between the fair value and its
1462023 Annual Report
book value shall be included in the current investment income; If the equity of the purchased party held before the
purchase date involves other comprehensive income other comprehensive income related to it shall be converted
into the investment income of the current period on the purchase date except for other comprehensive income
arising from the re-measurement of net liabilities or changes in net assets of the defined benefit plans by the
invested party.
6. Criteria for Control and Preparation Method of Consolidated Financial Statements
(1) Criteria for control
The consolidation scope of consolidated financial statements is determined on the basis of control. Control
means that the Company has the power over the investee is entitled to variable returns by participating in the
related activities of the investee and has the ability to use the power over the investee to influence its return
amount. Subsidiaries refer to subjects controlled by the Company (including enterprises divisible parts of
investee(s) structured subjects etc.).
(2) Compilation method of consolidated financial statements
The consolidated financial statements of the Company are based on the financial statements of the parent
company and its subsidiaries and are prepared according to other relevant information. When compiling the
important internal transactions between the parent company and its subsidiaries such as investment transactions
purchase and sale of inventories and their unrealized profits are offset and combined item by item and the
minority shareholders' rights and interests and the current income of minority shareholders are calculated. If the
accounting policies and accounting periods of subsidiaries are inconsistent with those of the parent company the
accounting statements of subsidiaries shall be adjusted according to the accounting policies and accounting
periods of the parent company before combination.
(3) Increase and decrease the consolidated report processing of subsidiaries during the reporting period
During the reporting period when preparing the consolidated balance sheet the balance at the beginning of
the consolidated balance sheet is adjusted for the subsidiaries added due to business combination under the same
control. When preparing the consolidated balance sheet the balance at the beginning of the year of the
consolidated balance sheet is not adjusted for the subsidiaries added due to business combination not under the
same control. During the reporting period the subsidiaries are disposed of and the balance at the beginning of the
consolidated balance sheet is not adjusted when the consolidated balance sheet is prepared.During the reporting period the income expenses and profits of subsidiaries added by business combination
under the same control from the beginning to the end of the reporting period are included in the consolidated
income statement and the cash flows from the beginning to the end of the reporting period are included in the
consolidated cash flow statement. For subsidiaries added due to business combination not under the same control
the income expenses and profits of such subsidiaries from the purchase date to the end of the reporting period are
included in the consolidated income statement and their cash flow from the purchase date to the end of the
reporting period is included in the consolidated cash flow statement. During the reporting period the subsidiary is
disposed of and the income expenses and profits from the beginning of the period to the disposal date are
included in the consolidated income statement and the cash flow from the beginning of the period to the disposal
date is included in the consolidated cash flow statement.When the control right of the original subsidiary is lost due to the disposal of part of the equity investment or
other reasons the remaining equity investment after disposal shall be re-measured according to its fair value on
the date of loss of control right. The sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity minus the difference between the share of the original subsidiary's net assets
calculated continuously from the purchase date and the sum of goodwill calculated according to the original
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shareholding ratio is included in the investment income in the current period when the control right is lost. Other
comprehensive income related to the original subsidiary's equity investment is converted into current investment
income when the control right is lost except for other comprehensive income generated by the investee's re-
measurement of net liabilities or changes in net assets of the set income plan.The difference between the newly acquired long-term equity investment due to the purchase of minority
shares and the identifiable net assets share of subsidiaries calculated according to the increased shareholding ratio
and the difference between the disposal price obtained from partial disposal of equity investment in subsidiaries
and the net assets share of subsidiaries corresponding to the disposal of long-term equity investment are used to
adjust the equity premium in the capital reserve in the consolidated balance sheet. If the equity premium in the
capital reserve is insufficient to offset the retained earnings will be adjusted.
(4) Processing of consolidated statements from step-by-step disposal of equity to loss of control rights
If the transactions that dispose of the equity investment in subsidiaries until the loss of control rights are of a
package transaction the transactions shall be treated as transactions that dispose of subsidiaries and lose control
rights; However the difference between the disposal price and the share of the subsidiary's net assets related to the
disposal investment before the loss of control right is recognized as other comprehensive income in the
consolidated financial statements which will be transferred to the current profit and loss when the control right is
lost except for other comprehensive income arising from the re-measurement of the net liabilities or changes in
net assets of the set income plan by the investee. If it is not a package transaction before the loss of control the
difference between the disposal price and the corresponding net assets continuously calculated by the subsidiary
from the purchase date will be adjusted to the capital reserve and if the capital reserve is insufficient to offset the
retained earnings will be adjusted; In case of loss of control right the accounting treatment shall be carried out
according to the above accounting policy when the control right over the original subsidiary is lost.
7.Recognition Standard of Cash & Cash Equivalents
Cash and cash equivalents of the Company include cash on hand ready usable deposits and investments having
short holding term (normally will be due within three months from the day of purchase) with strong liquidity and
easy to be exchanged into certain amount of cash that can bemeasured reliably and have low risks of change.
8.Foreign Currency Transaction
(1) Foreign currency business
Foreign currency transactions of the Company are converted into the amount of bookkeeping base currency
according to the spot rate on the transaction date.On the balance sheet date foreign currency monetary items and foreign currency non-monetary items shall be
treated according to the following provisions: foreign currency monetary items shall be converted at the spot rate
on the balance sheet date. Exchange differences arising from the difference between the spot rate on the balance
sheet date and the spot rate at the time of initial recognition or the previous balance sheet date are included in the
current profits and losses; Foreign currency non-monetary items measured at historical cost are still converted at
the spot rate on the transaction date without changing their bookkeeping base currency amount; Foreign currency
non-monetary items measured at fair value shall be converted at the spot rate on the fair value determination date
and the difference between the converted bookkeeping base currency amount and the original bookkeeping base
currency amount shall be treated as changes in fair value (including exchange rate changes) and included in the
current profits and losses; During the capitalization period the exchange difference between the principal and
interest of foreign currency special loans is capitalized and included in the cost of assets that meet the
capitalization conditions.
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(2) Translation of foreign currency financial statements
When converting foreign currency financial statements the Company shall comply with the following regulations:
assets and liabilities in the balance sheet shall be converted at the spot rate on the balance sheet date and other
items of owner's equity except "undistributed profits" shall be converted at the spot rate at the time of occurrence;
The income and expense items in the income statement shall be converted at the spot rate on the transaction date
(or at the exchange rate determined by a systematic and reasonable method and similar to the spot rate on the
transaction date). The translation difference of foreign currency financial statements generated according to the
above translation is recognized as other comprehensive income. The conversion of comparative financial
statements shall be handled according to the above provisions.
9.Financial instruments(Excluding impairment)
The Company recognizes the financial assets or liabilities when involved in financial instruments’ agreements.
（1）Classification recognition and measurement of financial assets
In accordance with the characteristics of business model for managing financial assets and the contractual cash
flow of financial assets the Company classifies financial assets into: financial assets measured in amortized cost;
financial assets measured at fair value and their's changes are included in other comprehensive income; financial
assets measured at fair value and their's changes are included in current profits and losses.The initial measurement of financial assets is calculated by using fair value. For financial assets measured at fair
value whose changes are included in current profits and losses relevant transaction costs are directly included in
current profits and losses; For other types of financial assets relevant transaction costs are included in the initial
recognition amount.* Financial assets measured at amortized cost
The business model of the Company's management of financial assets measured by amortized cost is aimed at
collecting the contractual cash flow and the contractual cash flow characteristics of such financial assets are
consistent with the basic lending arrangements that is the cash flow generated on a specific date is only the
payment of principal and interest based on the amount of outstanding principal. For such financial assets the
Company adopts the method of real interest rate and makes subsequent measurement according to the cost of
amortization. The profits or losses resulting from amortization or impairment are included in current profits and
losses.* Financial assets measured at fair value and changes included in other comprehensive income
The Company's business model for managing such financial assets is to collect the contractual cash flow and the
contractual cash flow characteristics of such financial assets are consistent with the basic lending arrangements.The Company measures such financial assets at fair value and their changes are included in other comprehensive
gains but impairment losses or gains exchange gains and losses and interest income calculated according to the
actual interest rate method are included in current profits and losses.In addition the Company designated some non-trading equity instrument investments as financial assets measured
at fair value with changes included in other comprehensive income. The Company includes the relevant dividend
income of such financial assets in current profits and losses and the changes in fair value in other comprehensive
gains. When the financial asset ceases to be recognized the accumulated gains or losses previously included in
other comprehensive gains shall be transferred into retained income from other comprehensive income and not be
included in current profit and loss.* Financial assets measured at fair value and changes included in current profits and losses
The Company includes the above-mentioned financial assets measured at amortized cost and those measured at
fair value and their's changes in financial assets other than financial assets of comprehensive income and classifies
1492023 Annual Report
them as financial assets measured at fair value and their's changes that are included in current profits and losses. In
addition the Company designates some financial assets as financial assets measured at fair value and includes
their changes in current profits and losses in order to eliminate or significantly reduce accounting mismatches
during initial recognition. In regard with such financial assets the Company adopts fair value for subsequent
measurement and includes changes in fair value into current profits and losses.
（2）Classification recognition and measurement of financial liabilities
The Group’s financial liabilities are on initial recognition classified into financial liabilities at fair value through
profit or loss and other financial liabilities. For financial liabilities at fair value through profit or loss relevant
transaction costs are immediately recognized in profit or loss for the current period and transaction costs relating
to other financial liabilities are included in the initial recognition amounts.* Financial liabilities measured by the fair value and the changes recorded in profit or loss
The classification by which financial liabilities held-for-trade and financial liabilities designed at the initial
recognition to be measured by the fair value follows the same criteria as the classification by which financial
assets held-for-trade and financial assets designed at the initial recognition to be measured by the fair value and
their changes are recorded in the current profit or loss
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured according to fair value. Except for hedging accounting changes in fair value are included in current
profits and losses.Financial liabilities designated as financial liabilities that are measured at fair value and their's changes are
included in current profits and losses. The liabilities are included in other comprehensive gains due to changes in
fair value caused by changes in the Company's own credit risk and when the liabilities are terminated the
changes in fair value caused by changes in its own credit risk of other comprehensive gains are included in the
cumulative changes in its fair value caused by changes in its own credit risk of other comprehensive gains. The
amount is transferred to retained earnings. The remaining changes in fair value are included in current profits and
losses. If the above-mentioned way of dealing with the impact of the changes in the credit risk of such financial
liabilities will result in or expand the accounting mismatch in the profits and losses the Company shall include all
the profits or losses of such financial liabilities (including the amount of the impact of the changes in the credit
risk of the enterprise itself) into the current profits and losses.* Other financial liabilities
In addition to the transfer of a financial asset is not in conformity with the conditions to stop the recognition or
formed by its continuous involvement in the transferred financial asset financial liabilities and financial guarantee
contract of other financial liabilities classified as financial liabilities measured at the amortized cost measured at
the amortized cost for subsequent measurement recognition has been stopped or amortization of the profit or loss
is included in the current profits and losses.
(3) Recognition basis and measurement methods for transfer of financial assets
Financial assets satisfying one of the following conditions shall be terminated and recognized: * The contractual
right to collect the cash flow of the financial asset is terminated; * The financial asset has been transferred and
almost all the risks and rewards in the ownership of the financial asset have been transferred to the transferee;
* The financial asset has been transferred although the enterprise neither transfers nor retains almost all the risks
and rewards in the ownership of the financial asset but it abandoned control of the financial assets.In case that the enterprise does not transfer or retain almost all risks and rewards on financial assets ownership nor
waive to control these assets relevant financial assets shall be recognized in accordance with the degree for
continued involvement of financial assets transferred and relevant liabilities shall be recognized correspondingly.
1502023 Annual Report
west bank The term "continuous involvement in the transferred financial asset" shall refer to the risk level that the
enterprise faces resulting from the change of the value of the financial asset.If the overall transfer of the financial assets satisfies the derecognition criteria the difference between the book
value of the transferred financial assets and the sum of the consideration received from transfer and cumulative
change in fair value previously recognized in other comprehensive income is accounted into the current profit or
loss.In case that the partial transfer of financial assets meets de-recognition conditions the book value of financial
assets transferred shall be allocated as per respective fair value between de-recognized or not de-recognized parts
and the difference between the sum of the consideration received due to transfer with the accumulated amount of
fair value changes that is previously included in other comprehensive income and shall be allocated to de-
recognized parts and the aforesaid book amount allocated shall be included in the current profit or loss.The Company shall determine whether almost all the risks and rewards of the ownership of the financial assets
sold by means of recourse or endorsed to transfer the financial assets it holds have been transferred. If almost all
the risks and rewards in the ownership of the financial asset have been transferred to the transferee the
confirmation of the financial asset shall be terminated; if almost all the risks and rewards in the ownership of the
financial asset have been retained the confirmation of the financial asset shall not be terminated; if neither the
transfer nor the retention of almost all the risks and rewards in the ownership of the financial asset has been made.In case of remuneration it shall continue to determine whether the enterprise has retained control over the assets
and conduct accounting treatment in accordance with the principles described in the preceding paragraphs.
(4) Termination confirmation of financial liabilities
If the current obligation of a financial liability (or part thereof) has been discharged the Company shall terminate
the recognition of the financial liability (or part thereof). If the Company (the debtor) signs an agreement with the
lender to replace the original financial liabilities by assuming new financial liabilities and the contract terms of
the new financial liabilities are substantially different from those of the original financial liabilities it shall
terminate the recognition of the original financial liabilities and at the same time confirm a new financial
liabilities. If the Company substantially amends the contract terms of the original financial liabilities (or part
thereof) it shall terminate the confirmation of the original financial liabilities and at the same time confirm a new
financial liabilities in accordance with the revised terms.If the financial liabilities (or part thereof) are terminated the difference between their book value and the
consideration paid (including the transferred non-cash assets or liabilities assumed) shall be included in the profits
and losses of the current period.
（5）Offsetting financial assets and financial liabilities
When the Company has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities and intends either to settle on a net basis or to realize the financial asset and settle the
financial liability simultaneously a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
(6) Method for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date. The fair value of financial instruments existing in an active
market is determined by the Company according to its quoted price in this market. westbank The quoted prices in
the active market refer to the prices which are easily available from the stock exchanges brokers industry
associations pricing service institutions and etc. at a fixed term and which represent the prices at which actually
1512023 Annual Report
occurred market transactions are made under fair conditions.￡¨ In can a financial instrument does not exist in
active markets its fair value shall be determined by the Company with assessment techniques. The value appraisal
techniques mainly include the prices adopted by the parties who are familiar with the condition in the latest
market transaction upon their own free will the current fair value obtained by referring to other financial
instruments of the same essential nature the cash flow capitalization method and the option pricing model etc. In
valuation the Company adopts valuation techniques that are applicable in the current situation and supported by
sufficient data and other information to select input values consistent with the characteristics of assets or liabilities
considered by market participants in the transactions of related assets or liabilities and give priority to the use of
relevant observable input values as far as possible. Unallowable values are used if the relevant observable input
values are not available or are not practicable.
（7）Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. The consideration received from issuing equity instruments net of transaction costs are added
to shareholders’ equity. All types of distribution (excluding stock dividends) made by the Company to holders of
equity instruments are deducted from shareholders’ equity.The dividends (including "interest" generated by the tools classified as equity instruments) distributed by the
Company's equity instruments during the period of their existence shall be treated as profit distribution.
10. Impairment of financial instruments
The Company requires to confirm that the financial assets lost by impairment are financial assets measured by
amortized cost investment in debt instruments and lease receivables which are measured at fair value and whose
changes are included in other comprehensive gains mainly including notes receivable accounts receivable other
receivables creditor's rights investment other creditor's rights investment and long-term receivables and etc. In
addition provision for impairment and confirmation of credit impairment losses are also made for contract assets
and some financial guarantee contracts in accordance with the accounting policies described in this section.
(1) Method of confirming impairment provision
Based on anticipated credit loss the Company calculates impairment preparation and confirms credit impairment
loss according to the applicable anticipated credit loss measurement method (general method or simplified
method).Credit loss refers to the difference between the cash flow of all contracts discounted according to the original real
interest rate and the expected cash flow of all contracts receivable according to the contract that is the present
value of all cash shortages. Among them the Company discounts the financial assets purchased or originated with
credit impairment at the actual interest rate adjusted by credit.The general method of measuring anticipated credit loss is whether the credit risk of the Company's financial
assets (including other applicable items such as contract assets similarly hereinafter) has increased significantly
since the initial recognition on each balance sheet day. If the credit risk has increased significantly since the initial
recognition the Company shall measure the loss preparation according to the amount equivalent to the expected
credit loss in the whole duration. If the credit risk has not increased significantly since the initial recognition the
Company shall measure the loss preparation according to the amount equivalent to the expected credit loss in the
next 12 months. The Company shall consider all reasonable and evidenced information including forward-
looking information when evaluating expected credit losses.Assuming that their credit risk has not increased significantly since the initial recognition the Company may
choose to measure the loss reserve according to the expected credit loss in the next 12 months for financial
1522023 Annual Report
instruments with low credit risk on the balance sheet date.
(2) Criteria for judging whether credit risk has increased significantly since the initial recognition
If the probability of default of a financial asset on the estimated duration of the balance sheet is significantly
higher than the probability of default during the estimated duration of the initial recognition the credit risk of the
financial asset is significantly increased. Except for special circumstances the Company uses the change of
default risk in the next 12 months as a reasonable estimate of the change of default risk in the entire duration to
determine whether the credit risk has increased significantly since the initial recognition.
(3) A portfolio-based approach to assessing expected credit risk
The Company shall evaluate the credit risk of financial assets with distinct differences in credit risk such as the
related party's receivables the receivables in dispute with the other party or involving litigation and arbitration
and receivables that has been proved that the debtor may not be able to fulfill the obligation of repayment etc.In addition to the financial assets that assess credit risk individually the Company shall divide financial assets into
different groups based on common risk characteristics and assess credit risk on the basis of portfolio.
(4) Accounting treatment of impairment of financial assets
At the end of the duration the Company shall calculate the anticipated credit losses of various financial assets. If
the anticipated credit losses are greater than the book value of its current impairment provision the difference is
deemed as impairment loss. If the balance is less than the book value of the current impairment provision the
difference is deemed as impairment profit.
(5) Method of determining credit losses of various financial assets
For financial assets with individual credit risk assessment the Company always selects to measure the loss
provision according to the amount equivalent to the expected credit loss within the duration.Based on the characteristics of credit risk the Company divides the financial assets that have not suffered
credit impairment in individual assessment into different portfolios:
* Basis for determining the combination of credit risk characteristics
Items Basis for determining the portfolio
Except for accounts receivable and other receivables for which loss provision has
been separately measured or belonging to portfolio 2 portfolio 3 and portfolio 4 the
Company determines the loss provision based on the expected credit loss of the same
Combination 1 (aging portfolio) or similar accounts receivable portfolio with similar credit risk characteristics in
previous years and divided according to aging considering the forward-looking
information. The aging shall be calculated from the time when the accounts receivable
are initially recognized
All kinds of deposits margins advances quality assurance margins employee loans
Portfolio 2 (margin portfolio) change reserve funds and other receivables that should be collected in daily and
regular activities
Portfolio 3 (financial asset portfolio with Notes receivable and other receivables with extremely low credit risk according to the
very low credit risk) expected credit loss calculation
Funds receivable from affiliated companies within the scope of consolidation are used
Portfolio 4 (risk-free portfolio)
as the basis for portfolio
* When credit risk assessment is carried out by portfolio method according to the portfolio structure of
financial assets and similar credit risk characteristics (the debtor's ability to repay the debts according to the
1532023 Annual Report
contract terms) combined with historical default loss experience and current economic situation and
considering forward-looking information the expected credit loss is measured on the basis of expected duration
to recognize the loss provision of financial assets.The accrual method of loss provision measured by different portfolios:
Items Accrual method
Combination 1 (aging portfolio) Estimated duration
Portfolio 2 (margin portfolio) Estimated duration
Portfolio 3 (financial asset portfolio with very low credit risk) Estimated duration
Portfolio 4 (risk-free portfolio) Estimated duration
* The expected credit loss rate of each portfolio is as follows:
Combination 1 (aging portfolio): expected credit loss rate
Expected credit loss rate of Expected credit loss rate of other
Aging
accounts receivable (%) receivables (%)
Within 1 year（Including 1 year） 0 0
1-2 years (Including 2 years） 10 10
2-3 years（Including 3 years） 30 30
3-4 years（Including 4 years） 50 50
4-5 years（Including 5 years） 90 90
Over 5 years 100 100
Portfolio 2 (margin portfolio): Based on the experience of historical default loss and current economic
situation and considering forward-looking information the expected credit loss rate is 0;
Portfolio 3 (financial asset portfolio with very low credit risk): combined with historical default loss
experience and current economic situation considering forward-looking information the expected credit loss
rate is 0;
Portfolio 4 (risk-free portfolio): based on the historical experience of default losses and current economic
situation considering forward-looking information the expected credit loss rate is 0.
11.Contract assets and Contract liabilities
（1）Contract assets
The Company lists the right to receive consideration for goods or services that have been transferred to
customers (and this right depends on other factors besides the passage of time) as contract assets. The accrual of
impairment provision of contract assets shall refer to the expected credit loss method of financial instruments.The Company adopts a simplified method to measure the loss provision for contract assets (whether or not they
contain significant financing elements).In case of impairment loss of contract assets the "asset impairment loss" shall be debited according to the
amount to be written down and the contract assets impairment provision shall be credited; When reversing the
accrued asset impairment provision make the opposite entry.
1542023 Annual Report
（2）Contract liabilities
The Company lists the obligation to transfer goods or provide services to customers for consideration
received or receivable from customers as contractual liabilities.The Company shall list the contract assets and liabilities under the same contract in net amount.In the contract between the Company and customers the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
In the contract between the Company and customers the Company has the right to charge the contract price
for the goods and related services that have been transferred to customers and meanwhile undertake the
performance obligation of transferring the goods or services to customers. When the customer actually pays the
contract consideration or the enterprise has transferred the goods or services to the customer before the
consideration becomes due and payable the right to receive the consideration due to the transferred goods or
services shall be listed as contract assets and recognized as accounts receivable or long-term receivables when the
unconditional right of collection is obtained. `
12. Long-term equity investments
(1) Initial measurement
The Company makes initial measurement of long-term equity investment in the following two situations:
* The initial investment cost of long-term equity investment formed by business combination shall be
determined in accordance with the following provisions:
A. In a business combination under the same control if the combining party pays cash transfers non-cash
assets or assumes debts as the combination consideration the share of the book value of the owner's equity of the
merged party in the consolidated financial statements of the final controlling party shall be taken as the initial
investment cost of long-term equity investment on the combination date. The difference between the initial
investment cost of long-term equity investment and the cash paid the transferred non-cash assets and the book
value of the debts undertaken is adopted to adjust the capital reserve; If the capital reserve is insufficient to offset
the retained earnings shall be adjusted. All directly related expenses incurred for business combination including
audit fees evaluation fees legal service fees etc. are included in the current profits and losses when they occur.B. In the business combination not under the same control the Company determines the combination cost by
distinguishing the following situations:
a) For business combination realized by one exchange transaction the cost of combination is the fair value of
assets paid liabilities incurred or assumed in order to gain control over the purchased party on the purchase date;
b) For business combination realized step by step through multiple exchange transactions the sum of the
book value of the equity investment of the purchased party held before the purchase date and the new investment
cost on the purchase date shall be taken as the initial investment cost of the investment;
c) Intermediary expenses such as auditing legal services evaluation and consultation and other related
management expenses incurred for business combination are included in the current profits and losses when they
occur;
d) If future events that may affect the combination cost are agreed in the combination contract or agreement
if it is estimated that the future events are likely to occur on the purchase date and the amount of impact on the
1552023 Annual Report
combination cost can be reliably measured they will be included in the combination cost.* Except for the long-term equity investment formed by business combination the initial investment cost of
long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For the long-term equity investment obtained by cash payment the actual purchase price shall be taken as
the initial investment cost. Initial investment cost includes expenses taxes and other necessary expenditures
directly related to obtaining long-term equity investment.B. For long-term equity investment obtained through exchange of non-monetary assets the initial investment
cost shall be determined according to Accounting Standards for Business Enterprises No.7-Exchange of Non-
monetary Assets.C. For long-term equity investment obtained through debt restructuring the initial investment cost shall be
determined according to Accounting Standards for Business Enterprises No.12-Debt Restructuring.* No matter how the long-term equity investment is obtained when the investment is obtained the cash
dividends or profits included in the paid consideration that have been declared but not yet issued by the investee
are separately accounted as receivable items which does not constitute the initial investment cost of obtaining the
long-term equity investment.
(2) Subsequent measurement
Long-term equity investment that can be controlled by the investee shall be accounted by the cost method in
individual financial statements. Long-term equity investments that have joint control or significant influence on
the investee shall be accounted by equity method.* Long-term equity investment accounted by cost method is priced according to the initial investment cost。
Adjust the cost of long-term equity investment by adding or recovering investment. Cash dividends or profits
declared and distributed by the investee shall be recognized as current investment income.If the initial investment cost of long-term equity investment accounted by equity method is greater than the
fair value share of identifiable net assets of the investee the initial investment cost of long-term equity investment
shall not be adjusted; If the initial investment cost of long-term equity investment is less than the fair value share
of the identifiable net assets of the investee at the time of investment the difference shall be included in the
current profits and losses and the cost of long-term equity investment shall be adjusted at the same time.After obtaining the long-term equity investment the investment income and other comprehensive income
shall be recognized respectively according to the share of the net profit and loss and other comprehensive income
realized by the invested unit and the book value of the long-term equity investment shall be adjusted at the same
time; According to the profit or cash dividend declared and distributed by the investee the book value of long-
term equity investment shall be reduced accordingly; The book value of the long-term equity investment is
adjusted and included in the owner's equity for other changes in the owner's equity of the investee except net
profit and loss other comprehensive income and profit distribution. When recognizing the share of the net profit
and loss of the investee the net profit of the investee is recognized after adjustment based on the fair value of the
identifiable net assets of the investee at the time of obtaining the investment. If the accounting policies and
accounting periods adopted by the investee are inconsistent with those of the Company the financial statements of
the investee shall be adjusted according to the accounting policies and accounting periods of the Company and
the investment income and other comprehensive income shall be recognized accordingly. The net loss incurred by
the investee is recognized to be written down to zero by the book value of long-term equity investment and other
long-term interests that substantially constitute the net investment of the investee unless the Company is obligated
to bear additional losses. If the investee achieves net profit in the future the Company will resume the recognition
of the revenue sharing amount after its revenue sharing amount compensates for the unrecognized loss sharing
1562023 Annual Report
amount.When calculating and recognizing the net profit and loss that should be enjoyed or shared by the investee the
unrealized internal transaction profit and loss with the affiliated enterprise and the joint venture shall be calculated
according to the proportion that should be enjoyed and the part attributable to the Company shall be offset and
the investment income shall be recognized on this basis. Unrealized internal transaction losses between the
Company and the investee are asset impairment losses which shall be fully recognized.Part of the company's equity investment in affiliated enterprises is indirectly held through venture capital
institutions mutual funds trust companies or similar entities including investment-linked insurance funds.Regardless of whether the above entities have a significant impact on this part of investment the Company
chooses to measure this part of indirect investment at fair value and its change is included in profit or loss in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-Recognition and
Measurement of Financial Instruments and the rest is accounted for by equity method.* When the Company disposes of long-term equity investment the difference between its book value and
the actual purchase price shall be included in the current profits and losses. For long-term equity investment
accounted by equity method when disposing of the investment it adopts the same basis as the investee's direct
disposal of related assets or liabilities and accounts for the part originally included in other comprehensive
income according to the corresponding proportion.
(3) Basis to determine joint control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with the relevant agreement and
the relevant activities of such arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. Significant influence means that the investor has the right to participate in the
decision-making on the financial and operating policies of the investee but cannot control or jointly control the
formulation of these policies with other parties. When determining whether the investee can be controlled or exert
significant influence the potential voting rights factors such as current convertible bonds and current executable
warrants of the investee held by the Company and other parties shall be considered at the same time.
13.Investment Property
The measurement mode of investment property
The measurement by the cost method
Depreciation or amortization method
Investment property is held to earn rentals or for capital appreciation or for both. Investment property
includes leased or ready to transfer after capital appreciation land use rights and leased buildings.The Company's investment real estate is initially measured according to the cost at the time of acquisition
and depreciated or amortized on schedule according to the relevant provisions of fixed assets or intangible
assets.Subsequent expenditures related to investment real estate are included in the investment real estate cost
when the relevant economic benefits are likely to flow into the Company and such cost can be reliably
measured; Otherwise they are included in the current profits and losses when they occur.For the investment real estate that is subsequently measured by the cost model please refer to 26 in this
section for the method of asset impairment.When the use of investment real estate is changed to self-use or external sale the investment real estate
will be converted into fixed assets intangible assets or inventory from the date of change. When the use of
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private real estate is changed to rent-earning or capital appreciation the fixed assets or intangible assets will be
converted into investment real estate from the date of change. In case of conversion the book value before
conversion is taken as the entry value after conversion.The estimated service life estimated net salvage and depreciation (amortization) method of investment real
estate are reviewed at the end of each year and appropriate adjustments are made.When the investment real estate is disposed of or permanently withdrawn from use and it is not expected
to obtain economic benefits from its disposal the recognition of the investment real estate will be terminated.The disposal income from the sale transfer scrapping or damage of investment real estate after deducting its
book value and related taxes is included in the current profits and losses. The difference between the disposal
income from the sale transfer scrapping or damage of investment real estate after deducting its book value and
related taxes is included in the current profits and losses.
14.Fixed assets
（1）Confirmation conditions
The Company's fixed assets refer to tangible assets held for the production of commodities provision of
labor services leasing or operation management which have a service life of more than one year and whose
economic benefits are likely to be included into the Company and whose costs can be reliably measured.The Company's fixed assets include roads and bridges houses and buildings machinery and equipment
electronic equipment transportation tools and other equipment.（ 2 ） The Company's fixed assets include roads and bridges houses and buildings machinery and
equipment electronic equipment transportation tools and other equipment.For the fixed assets formed by special reserve expenditure the special reserve shall be offset according to the
cost to form the fixed assets and the accumulated depreciation of the same amount shall be recognized. The fixed
assets will not be depreciated in future periods.According to the nature and usage of fixed assets the Company determines the service life and estimated net
salvage value of fixed assets. At the end of the year the service life estimated net salvage value and depreciation
method of fixed assets shall be rechecked and if there is any difference with the original estimate corresponding
adjustments shall be made.The useful life residual value rate and annual depreciation rate of various fixed assets are listed as follows:
Expected useful Annual depreciation
Type Depreciation method Residual rate（%）
life(Year) rate(%)
Highway and Bridge
Including：Guangfo
Working flow basis 28 years 0%
Expressway
Fokai Expressway-Xiebian to
Working flow basis 40 years 0%
Sanbao Section
Fokai Expressway-Sanbao to
Working flow basis 47.5 years 0%
Shuikou Section
Jingzhu Expressway Guangzhu
Working flow basis 30 years 0%
Section
Guanghui Expressway Co. Working flow basis 23 years 0%
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Ltd.House Building The straight-line
20-30 years 3%-5% 3.17%-4.85%
method
The straight-line
Machine Equipment 3-10 years 3%-5% 9.50%-32.33%
method
The straight-line
Transportation Equipment 5-8 years 3%-5% 11.88%-19.40%
method
The straight-line
Other 5 years 3%-5% 19.00%-19.40%
method
15.Construction-in process
The Company's construction in progress is accounted for in detail according to the project and the projects of
construction in progress are regarded as the entry value of fixed assets according to all expenses incurred before
the assets reach the scheduled serviceable state. Including the construction cost the original price of machinery
and equipment other necessary expenses incurred to make the construction in progress reach the scheduled
serviceable state as well as the borrowing costs incurred for the special loan of the project and the borrowing
costs incurred for the occupied general loan before the assets reach the scheduled serviceable state. The Company
will transfer the construction in progress into fixed assets when the project installation or construction reaches the
scheduled serviceable state. The constructed fixed assets that have reached the scheduled serviceable state but
have not yet been settled for completion shall be transferred to fixed assets according to the estimated value
according to the project budget construction cost or actual cost and the depreciation of fixed assets shall be
accrued according to the depreciation policy of the Company. After the completion of the final accounts the
original provisional estimated value shall be adjusted according to the actual cost but the original accrued
depreciation amount shall not be adjusted.The standards and time points for converting the Company's construction in progress into fixed assets are as
follows:
Category Standard and time point for converting into fixed assets
(1) The physical construction including the installation of related equipment and other supporting
facilities has been completely or substantially completed; (2) The amount of continued construction
expenditure is very small or almost no longer occurs; (3) Relevant equipment can maintain normal and
Expressway construction stable operation for a period of time after debugging; (4) The constructed expressway has reached the
project design or contract requirements or basically conforms to the design or contract requirements; (5) If the
construction project has reached the scheduled serviceable state but has not yet completed the final
accounts for completion it will be transferred to the fixed assets according to the estimated value according
to the actual cost of the project from the date of reaching the scheduled serviceable state.
(1) The physical construction including installation has been completed or substantially completed; (2)
The amount of expenditure that continues to occur on the purchased houses and buildings is very small or
almost no longer occurs; (3) The purchased houses and buildings have reached the design or contract
Houses and buildings requirements or are basically consistent with the design or contract requirements; (4) If the construction
project has reached the scheduled serviceable state but has not yet completed the final accounts for
completion it will be transferred to the fixed assets according to the estimated value according to the actual
cost of the project from the date of reaching the scheduled serviceable state.
(1) Related equipment and other supporting facilities have been installed; (2) After debugging the
Machinery and
equipment can maintain normal and stable operation for a period of time and be accepted by relevant
equipment
personnel.
16.Borrowing cost
(1) Recognition principle and capitalization period of borrowing cost capitalization
Borrowing costs incurred by the Company can be directly attributed to the purchase construction or production of
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assets that meet the capitalization conditions and shall be capitalized when the following conditions are met at the
same time and included in the relevant asset costs:
* Production and expenditure have occurred;
* Borrowing costs have already occurred;
* The purchase construction or production activities required to make the assets reach the intended usable or
saleable state have started.Capitalization of borrowing costs shall be suspended if the assets that meet the capitalization conditions are
abnormally interrupted in the process of purchase construction or production and the interruption time
continuously exceeds 3 months. Borrowing costs incurred during the interruption period are recognized as
expenses and included in the current profits and losses until the purchase and construction of assets or the
resumption of production activities. If the interruption is a necessary procedure for the purchased built or
produced assets that meet the capitalization conditions to reach the intended usable or saleable state the
capitalization of borrowing costs will continue.Capitalization of borrowing costs shall be stopped when assets eligible for capitalization are purchased built or
produced to the intended usable or saleable state. Borrowing costs incurred in the future are recognized as
expenses in the current period.
(2) Calculation method of capitalization amount of borrowing costs
Where a special loan is borrowed for the purpose of purchasing building or producing assets that meet the
capitalization conditions it shall be determined by deducting the interest income obtained by depositing unused
loan funds into the bank from the interest expenses actually incurred in the current period of special loan or by the
investment income obtained by temporary investment.If the general loan is occupied for the purpose of purchasing building or producing assets that meet the
capitalization conditions the interest amount of the general loan that should be capitalized shall be calculated and
determined according to the weighted average of the accumulated asset expenditure exceeding the special loan
portion multiplied by the capitalization rate of the occupied general loan. Capitalization rate is calculated and
determined according to the weighted average interest rate of general borrowings.
17.Intangible assets
(1) Service life and its determination basis estimation amortization method or review procedure
The intangible assets of the Company are initially measured at cost. The purchased intangible assets shall
be regarded as the actual cost according to the actual paid price and related expenses. The actual cost of
intangible assets invested by investors shall be determined according to the value agreed in the investment
contract or agreement but if the value agreed in the contract or agreement is unfair the actual cost shall be
determined according to the fair value. The cost of self-developed intangible assets is the total expenditure
incurred before reaching the intended use.The follow-up measurement methods of the Company's intangible assets are as follows: intangible assets
with limited service life are amortized by the straight-line method or workload method according to different
categories and the service life and amortization method of intangible assets are rechecked at the end of the year
and if there is any difference from the original estimate corresponding adjustments will be made; Intangible
assets with uncertain service life are not amortized but at the end of the year their service life will be reviewed.When there is conclusive evidence that their service life is limited it will be estimated and amortized by the
straight-line method.
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The amortization method of intangible assets with limited service life is as follows:
Category Amortization years Amortization method
Land use right Remaining useful life Straight-line method
Software 3-5 years Straight-line method
Toll road franchise Residual toll operation period Workload method
18. Long-term amortizable expenses
Long-term deferred expenses are recorded according to the actual amount incurred and are amortized equally in
installments during the benefit period or within the prescribed period. If the long-term prepaid expense item
cannot benefit the future accounting period the amortized value of the item that has not been amortized will be
transferred to the current profits and losses.
19. Employee Benefits
Employee compensation refers to various forms of remuneration or compensation given by the Company for
obtaining services provided by employees or dissolving labor relations. Employee compensation includes short-
term salary post-employment benefits dismissal benefits and other long-term employee benefits. Benefits
provided by the Company to spouses children dependents survivors of deceased employees and other
beneficiaries of employees are also employee compensation.
（1）Accounting methods of short-term benefits
During the accounting period when employees provide services the Company recognizes the actual short-term
salary as a liability which is included in the current profits and losses except that other accounting standards
require or allow it to be included in the cost of assets.
(2) Accounting methods for post-employment benefits
The Company classifies the post-employment benefit plan into defined contribution plan and defined benefit
plans. Post-employment benefit plan refers to the agreement reached between the Company and employees on
post-employment benefits or the rules or measures formulated by the Company to provide post-employment
benefits to employees among which the set deposit plan refers to the post-employment welfare plan in which the
Company no longer undertakes further payment obligations after paying a fixed fee to an independent fund;
Defined benefit plans refers to the post-employment benefit plan except the set-up deposit plan.
(3) Accounting Treatment Method of Demission Welfare
If the Company provides dismissal benefits to employees the employee compensation liabilities arising from
the dismissal benefits shall be recognized as soon as possible and included in the current profits and losses: when
the company cannot unnaturally withdraw the dismissal benefits provided by the termination of labor relations
plan or reduction proposal; when the Company recognizes the costs or expenses related to the reorganization
involving the payment of dismissal benefits.
（4）Other long-term employee benefits
If other long-term employee benefits provided by the Company to employees meet the conditions of the set
deposit plan they shall be handled according to the accounting policies of the set deposit plan mentioned above;
Otherwise the net liabilities or net assets of other long-term employee benefits shall be recognized and measured
in accordance with the accounting policies of defined benefit plans mentioned above.
20.Estimated liabilities
(1) Recognition criteria of estimated liabilities
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If the obligations related to contingencies stipulated by the Company meet the following conditions at the
same time they are recognized as estimated liabilities:
* The obligations are the current obligations undertaken by the enterprise;
* Fulfilling the obligations is likely to cause economic benefits to flow out of the enterprise;
* The amount of the obligations can be measured reliably.
(2) Measurement method of estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditure required to fulfill
relevant current obligations. There is a continuous range of required expenditure and the possibility of occurrence
of various results in this range is the same and the best estimate is determined according to the intermediate value
in this range. In other cases the best estimates are treated as follows:
* Contingencies involving a single item shall be determined according to the most probable amount.* Contingencies involving multiple items shall be calculated and determined according to various possible
results and relevant probabilities.When determining the best estimate the risk uncertainty and time value of money related to contingencies
shall be considered comprehensively. If the time value of money has great influence the best estimate is
determined by discounting the related future cash outflow.If all or part of the expenses required by the Company to pay off the estimated liabilities are expected to be
compensated by a third party the compensation amount can be recognized as an asset only when it is basically
confirmed that it can be received. The recognized compensation amount shall not exceed the book value of the
estimated liabilities.The Company rechecks the book value of the estimated liabilities on the balance sheet date. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate the book value shall be
adjusted according to the current best estimate.
21. Revenues
Accounting policies adopted for income recognition and measurement
(1) Revenue recognition principle
Since the starting date of the contract the company shall evaluate the contract identifies each individual
performance obligation contained in and determines whether each individual performance obligation is
performed within a certain period of time or at a certain point of time.
1、The performance obligation is defined as fulfillment within a certain period of time if one of the
following conditions is met otherwise it is defined as fulfilled at a certain point in time: * The customer obtains
and consumes the economic benefits brought by the company's performance while the company performs the
contract; * The customer can control the goods under manufacturing or services during the company's
performance; * The goods or services produced during the company's performance have irreplaceable uses and
the company has the right to accumulate for the completed performances during the entire contract period.For obligations performed within a certain period of time the company recognizes revenue in accordance with the
performance progress in that period. If the performance progress cannot be reasonably determined and the cost
incurred is expected to be compensated the revenue shall be recognized according to the amount of the cost
incurred until the performance progress can be reasonably determined. For obligations performed at a certain
point in time revenue shall be recognized at the point when the customer obtains control of the relevant goods or
services. When judging whether the customer has obtained control of the product the company shall consider the
following points: * The company has the current right to receive payment for the product that is the customer
has the current payment obligation for the product; * The company has transferred the legal ownership of the
1622023 Annual Report
product to the customer that is the customer has the legal ownership of the product; * The company has
transferred the physical product to the customer that is the customer has physically taken possession of the
product; * The company has transferred the main risks and rewards on the ownership of the product to the
customer that is the customer has obtained the main risks and rewards on the ownership of the product; * The
customer has accepted the product;* Other signs that the customer has obtained control of the product.
(2) Principle of revenue measurement
* The company shall measure revenue based on the transaction price allocated to each individual performance
obligation. The transaction price is the amount of consideration that the company expects to be entitled to receive
due to the transfer of goods or services to customers while does not include payments received on behalf of third
parties and payments expected to be returned to customers.* If there is variable consideration in the contract the company shall determine its best estimate according to the
expected value or the most likely amount but the transaction price including the variable consideration shall not
exceed the accumulated amount that if relevant uncertainty is eliminated will most likely have no significant
reversal.* If there is any significant financing component in the contract the company shall determine the transaction
price based on the amount payable in cash when the customer assumes control of the goods or services. The
difference between transaction price and contract consideration shall be amortized through effective interest
method during the contract period. On the starting date of contract if the company expects that the customer will
obtain control of the goods or services and pays the price within one year the significant financing component in
contract shall not be considered.* If the contract contains two or more performance obligations the company shall on date of the contract
allocate the transaction price to each individual obligation item in accordance with the relative proportion of the
separate selling price of promised goods.The adoption of different business models in similar businesses leads to differences in accounting policies for
revenue recognition
(3) Specific methods of revenue recognition
1) Toll service fee income
Toll revenue refers to the toll revenue from operating toll roads which is recognized according to the
amount collected and receivable when vehicles pass.
2）Advertising and other revenue
Advertising and other income shall be recognized as operating income within the service period according
to the service time and price after the service is provided.
22. Contract cost
If the incremental cost incurred by the Company to obtain the contract is expected to be recovered it will
be recognized as an asset for the contract acquisition cost. If the amortization period of the contract acquisition
cost does not exceed one year it will be directly included in the current profits and losses when it occurs.If the cost incurred by the Company to perform the contract does not apply to the scope of the relevant
standards such as inventory fixed assets or intangible assets and meets the following conditions at the same
time it shall be recognized as an asset for the contract performance cost:
1632023 Annual Report
(1) The cost is directly related to a current or expected contract including direct labor direct materials
manufacturing expenses (or similar expenses) costs explicitly borne by customers and other costs incurred only
due to the contract;
(2) The cost increases the Company's resources for performing and fulfilling its obligations in the future;
(3) The cost is expected to be recovered.
The Company amortizes the assets related to the contract cost on the same basis as the income of goods or
services related to the assets and includes them into the current profits and losses.If the book value of the assets related to the contract cost is higher than the expected remaining
consideration due to the transfer of the goods or services related to the assets minus the estimated costs to be
incurred the Company will make provision for impairment of the excess and recognize it as an asset
impairment loss. If the factors of impairment in the previous period have changed so that the expected residual
consideration of the goods or services related to the asset after the transfer minus the estimated cost is higher
than the book value of the asset it will be transferred back to the originally accrued asset impairment provision
and included in the current profits and losses but the book value of the asset after the transfer does not exceed
the book value of the asset on the transfer date if the impairment provision is not accrued.
23. Government Grants
(1) Types of government subsidies and accounting treatment
Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from
the government for free (but excluding the capital invested by the government as the owner). If government
subsidies are monetary assets they shall be measured according to the amount received or receivable. If
government subsidies are non-monetary assets they shall be measured at fair value; If the fair value cannot be
obtained reliably they shall be measured according to the nominal amount.Government subsidies related to the daily activities are included in other income according to the nature of
economic business. Government subsidies unrelated to the daily activities are included in non-operating income.Government documents clearly specify that government subsidies for purchasing constructing or
otherwise forming long-term assets are recognized as government subsidies related to assets. If the object of
subsidy is not clearly specified in government documents and long-term assets can be formed the part of
government subsidies corresponding to the value of assets shall be regarded as the government subsidies related
to assets and the rest shall be regarded as the government subsidies related to income; If it is difficult to
distinguish them the government subsidies as a whole will be regarded as a government subsidies related to
income. Government subsidies related to assets are recognized as deferred income. The amount recognized as
deferred income shall be included in the current profits and losses by stages in accordance with a reasonable and
systematic method within the service life of the relevant assets.Government subsidies other than those related to assets are recognized as government subsidies related to
income. If government subsidies related to income are used to compensate the related expenses or losses of the
enterprise in the future they will be recognized as deferred income and will be included in the current profits
and losses during the period when the related expenses are recognized; If used to compensate the related
expenses or losses that have occurred in the enterprise they will be directly included in the current profits and
losses.
1642023 Annual Report
The Company has obtained the policy preferential loan discount and the finance will allocate the discount
funds to the lending bank. If the lending bank provides loans to the Company at the policy preferential interest
rate the actually received loan amount will be taken as the recorded value of the loan and the relevant
borrowing costs will be calculated according to the loan principal and the policy preferential interest rate; If the
finance directly allocates the discount funds to the Company the Company will offset the relevant borrowing
costs with the corresponding discount.
(2) Recognition time of government subsidies
Government subsidies are recognized when they meet the conditions attached to government subsidies and
can be received. Government subsidies measured according to the amount receivable shall be recognized at the
end of the period when there is conclusive evidence that they can meet the relevant conditions stipulated in the
financial support policy and it is expected that financial support funds can be received. Other government
subsidies other than those measured according to the amount receivable shall be recognized when the subsidies
are actually received.
24.Deferred income tax assets and deferred income tax liabilities
The Company adopts the balance sheet liability method for income tax accounting treatment.
(1) Deferred tax assets
* If there is a deductible temporary difference between the book value of an asset or liability and its tax
basis the deferred income tax assets generated by the deductible temporary difference shall be calculated and
confirmed according to the applicable tax rate during the expected period of recovering the asset or paying off the
liability.* On the balance sheet date if there is conclusive evidence that sufficient taxable income is likely to be
obtained in the future period to offset the deductible temporary difference the unrecognized deferred income tax
assets in the previous period shall be recognized.* On the balance sheet date the book value of deferred income tax assets shall be reviewed. If it is unlikely
that enough taxable income will be obtained in the future period to offset the benefits of deferred income tax
assets the book value of deferred income tax assets will be written down. When sufficient taxable income is likely
to be obtained the written-down amount will be reversed.
(2) Deferred income tax liabilities
If there is a taxable temporary difference between the book value of assets and liabilities and their tax basis
the deferred income tax liabilities arising from the taxable temporary difference shall be recognized according to
the applicable tax rate during the expected period of recovering the assets or paying off the liabilities.
25.Lease
(1) Accounting treatment method for leasing as a lessee
On the start date of the lease term the Company recognizes the right-to-use assets and lease liabilities for
leases other than short-term leases and low-value asset leases and recognizes depreciation expenses and interest
expenses respectively during the lease term.The Company adopts the straight-line method in each period of the lease term and the lease payment of
short-term leases and low-value asset leases is included in the current expenses.
1652023 Annual Report
1) Right-to-use assets
The right-to-use assets refer to the right of the lessee to use the leased assets during the lease term. On the
start date of the lease term the right-to-use assets are initially measured according to the cost. The cost includes:
* The initial measurement amount of lease liabilities; * The lease payment amount issued on or before the
start date of the lease term where if there is a lease incentive the amount related to the entitled lease incentive
shall be deducted;* The initial direct expenses incurred;* The cost expected to be incurred to dismantle and
remove the leased assets restore the site where the leased assets are located or restore the leased assets to the
state agreed in the lease terms.The depreciation of the Company's right-to-use assets is classified and accrued by the average life method.If it can be reasonably determined that the ownership of the leased assets will be acquired at the expiration of
the lease term depreciation will be accrued within the expected remaining service life of the leased assets; If it
is impossible to reasonably determine that the ownership of the leased assets will be acquired at the expiration
of the lease term depreciation shall be accrued during the lease term or the remaining service life of the leased
assets whichever is shorter.According to the relevant provisions of Accounting Standards for Business Enterprises No.8 - Impairment
of Assets the Company determines whether the right-to-use assets have been impaired and carries out
accounting treatment.
2) Lease liabilities
Lease liabilities are initially measured according to the present value of unpaid lease payment on the start
date of the lease term. The lease payment include: * Fixed payment (including substantial fixed payment) if
there is lease incentive the relevant amount of lease incentive shall be deducted; * Variable lease payment
depending on index or ratio;* The amount expected to be paid according to the residual guarantee provided by
the lessee;* The exercise price of the purchase option provided that the lessee reasonably determines that the
option will be exercised;* The amount to be paid when the option to terminate the lease is exercised provided
that the lease term reflects that the lessee will exercise the option to terminate the lease;
The Company adopts the interest rate implicit in lease as the discount rate; If the interest rate implicit in
lease cannot be reasonably determined the incremental loan interest rate of the Company shall be adopted as
the discount rate. The Company calculates the interest expense of the lease liabilities during the lease term
according to the fixed periodic interest rate and includes it in the financial expense. The periodic interest rate
refers to the discount rate adopted by the Company or the revised discount rate.The variable lease payments that are not included in the measurement of lease liabilities are included in the
current profits and losses when actually incurred.When the Company's evaluation results of the option to renew the lease terminate the lease or purchase
change the lease liabilities will be re-measured according to the present value calculated by the changed lease
payment and the revised discount rate and the book value of the right-to-use assets will be adjusted accordingly.When the actual lease payment the expected payable amount of the residual guarantee or the variable lease
payment depending on the index or ratio changes the lease liabilities shall be re-measured according to the
present value calculated by the changed lease payment and the original discount rate and the book value of the
right-to-use assets shall be adjusted accordingly.
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(2) Accounting treatment method for leasing as a lessor
1) Accounting treatment of operating lease
During each period of the lease term the Company adopts the straight-line method to recognize the lease
receipts from operating lease as rental income. The Company capitalizes the initial direct expenses related to
operating lease and includes them in the current income by stages according to the same recognition basis as
the rental income during the lease term.
2) Accounting treatment of financial lease
On the lease start date the Company recognizes the difference between the sum of the financial lease
receivable and the unguaranteed residual value and its present value as unrealized financing income and
recognizes it as lease income in the future period when the rent is received. The initial direct expenses incurred
by the Company related to the leasing transaction are included in the initial entry value of the financial lease
receivable.
26. Impairment of assets
The following signs indicate that the assets may be impaired:
(1) The market price of assets fell sharply in the current period which was significantly higher than the
expected decline due to the passage of time or normal use.
(2) The economic technical or legal environment in which the Company operates and the market in which
the assets are located have undergone major changes in the current period or in the near future which will have
adverse effects on the Company.
(3) The market interest rate or other market return on investment has increased in the current period which
affects the discount rate used by enterprises to calculate the present value of the estimated future cash flow of
assets resulting in a significant decrease in the recoverable amount of assets.
(4) There is evidence that the assets are outdated or their entities have been damaged.
(5) Assets have been or will be idle terminated or planned to be disposed of in advance.
(6) The evidence reported by the company shows that the economic performance of assets has been or will
be lower than expected such as the net cash flow created by assets or the realized operating profit (or loss) is far
lower than the expected amount.
(7) Other indications that assets may have been impaired.
On the balance sheet date the Company judges various assets that are applicable to the Accounting
Standards for Business Enterprises No.8-Impairment of Assets such as long-term equity investment fixed assets
engineering materials construction in progress intangible assets (except those with uncertain service life) and
conducts impairment test when there are signs of impairment-estimating their recoverable amount. The
recoverable amount is determined by the higher of the net amount of the fair value of the asset minus the disposal
expenses and the present value of the estimated future cash flow of the asset. If the recoverable amount of an asset
is lower than its book value the book value of the asset shall be written down to the recoverable amount and the
written-down amount shall be recognized as the asset impairment loss which shall be included in the current
profits and losses and the corresponding asset impairment reserve shall be accrued at the same time.If there are signs that an asset may be impaired the Company usually estimates its recoverable amount on the
basis of individual assets. When it is difficult to estimate the recoverable amount of a single asset the recoverable
amount of the asset group is determined based on the asset group to which the asset belongs.Asset group is the smallest asset portfolio that can be recognized by the Company and its cash inflow is
1672023 Annual Report
basically independent of other assets or asset groups. The asset group consists of assets related to cash inflow. The
identification of asset group is based on whether the main cash inflow generated by asset group is independent of
other assets or cash inflow of asset group.The Company conducts impairment test every year for intangible assets with uncertain goodwill and service
life formed by business combination and not yet in serviceable condition regardless of whether there is any sign
of impairment. The impairment test of goodwill is carried out in combination with its related asset group or
combination of asset groups.Once the asset impairment loss is confirmed it will not be reversed in the following accounting period.
27. Fair value measurement
Fair value refers to the price that a market participant must pay to sell or transfer a liability in an orderly
transaction that occurs on the measurement date.The Company measures related assets or liabilities at fair value assuming that the orderly transaction of selling
assets or transferring liabilities is conducted in the main market of related assets or liabilities; If there is no major
market the Company assumes that the transaction will be conducted in the most favorable market of related assets
or liabilities. The main market (or the most favorable market) is the trading market that the Company can enter on
the measurement day. The Company adopts the assumptions used by market participants to maximize their
economic benefits when pricing the assets or liabilities.When measuring non-financial assets at fair value the ability of market participants to use the assets for the best
purpose to generate economic benefits or the ability to sell the assets to other market participants for the best
purpose to generate economic benefits shall be considered.The Company adopts the valuation technology which is applicable in the current situation and supported by
sufficient available data and other information and gives priority to the relevant observable input values and only
uses the unobservable input values when the observable input values are unavailable or impractical.For assets and liabilities measured or disclosed at fair value in financial statements it shall determine the fair
value level according to the lowest level input value which is of great significance to fair value measurement as a
whole: the first-level input value is the unadjusted quotation of the same assets or liabilities that can be obtained
on the measurement date in an active market; The second-level input value is directly or indirectly observable
input values of related assets or liabilities except the first-level input value; The third level input value is the
unobservable input value of related assets or liabilities.On each balance sheet date the Company reassesses the assets and liabilities recognized in the financial
statements that are continuously measured at fair value to determine whether there is a conversion between the
fair value measurement levels.
28.Change of main accounting policies and estimations
(1)Change of main accounting policies
□Applicable □Not applicable
Implement the provisions of "Accounting Treatment for Deferred Income Tax Related to Assets and
Liabilities Arising from Individual Transactions" in Interpretation No.16 of Accounting Standards for Business
Enterprises.On November 30 2022 the Ministry of Finance issued the No. 16Interpretation of Accounting Standards
for Business Enterprises (No. 31[2022]Cai Hui) (hereinafter referred to as "No. 16Interpretation"). Adopted by
1682023 Annual Report
the resolution of the seventh meeting of the 10th Board of Directors of the Company on March 20 2023 the
Company implements the relevant provisions of the No. 16Interpretation from January 1 2023.According to Interpretation No.16 for the taxable temporary differences and deductible temporary
differences caused by the initial recognition of assets and liabilities in a single transaction that is not a business
merger does not affect accounting profits or taxable income (or deductible losses) at the time of transaction
and the initial recognition of assets and liabilities leads to equal taxable temporary differences and deductible
temporary differences the Company respectively recognizes the corresponding deferred income tax liabilities
and deferred income tax assets at the time of transaction according to the Accounting Standards for Business
Enterprises No.18-Income Tax and other relevant provisions.The impact of the implementation of the above regulation on the financial statement for the this period and for
comparable periods is as follows:
1. Impact on consolidated financial statementDecember 312022/2022（Before the January 12023/2022（After InfluenceItemschange） change） number
Long term share equity 2923368667.84 2923305042.30 -63625.54
investment
Deferred income tax assets 128179543.02 129044978.46 865435.44
Deferred income tax liability 306806527.72 307825916.58 1019388.86
Retained profit 4698247435.40 4698029354.09 -218081.31
Minority shareholders’ equity 2293019517.51 2293020019.86 502.35
Investment income 254956789.70 254893164.16 -63625.54
Income tax expenses 547291352.09 547955753.85 664401.76
Profit and loss of minority
517518728.74517518900.36171.62
shareholders
2.Impact on Parent company financial statement
In RMBDecember 312022/2022（Before the January 12023/2022（After InfluenceItemschange） change） number
Long term share equity 6096479269.50 6096415643.96 -63625.54
investment
Deferred income tax assets 122968519.19 123579950.33 611431.14
Deferred income tax liability 61217804.42 61985198.42 767394.00
Retained profit 4723852770.46 4723633182.06 -219588.40
Minority shareholders’ equity 1173330227.52 1173266601.98 -63625.54
Investment income 95996578.31 96661666.54 665088.23
1692023 Annual ReportDecember 312022/2022（Before the January 12023/2022（After InfluenceItemschange） change） number
Income tax expenses
（1）Significant estimates changes
□Applicable √Not applicable
（2）The information of the adjusting items related to the financial statements at the beginning of the year of
first implementation due to the first implementation of new accounting standards from 2023.Adjustment
description
□Applicable □Not applicable
Note
See (1) Important accounting policy changes
VI. Taxation
1. Major category of taxes and tax rates
Tax category Tax basis Tax rate
VAT Taxable income 3%5%6%9%13%
City maintenance and construction tax The actual payment of turnover tax 5%7%
Enterprise income tax Taxable income 25%
Education Fee Surcharge The actual payment of turnover tax 3%
Local education surcharge The actual payment of turnover tax 2%
2.Preferential tax treatment
None
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
In RMB
Items Amount in year-end Balance Year-beginning
Cash 35130.15 43420.71
Bank deposit 2039934390.23 1896056055.51
Other 514004.48 515903.01
Money deposited with a finance
2662395109.142389294052.10
Company
Interest accrued when not due 15753098.20 4672059.45
Total 4718631732.20 4290581490.78
Other note
The interest receivable is RMB 15753098.20 from interest accrued on seven-day call deposits.
2. Account receivable
（1）Disclosure by aging
1702023 Annual Report
In RMB
Aging Balance in year-end Balance Year-beginning
Within 1 year 131238586.90 96058380.92
1-2 years 9116666.67 12958333.31
2-3 years 2077392.00
Over 3 year 3143664.00 1066272.00
3-4 years 2077392.00 1066272.00
4-5 years 1066272.00
Subtotal 143498917.57 112160378.23
Bad debt provision 3599497.33 3791580.67
Total 139899420.24 108368797.56
1712023 Annual Report
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accrual of bad
debt provision 3143664.00 2.19% 3143664.00 100.00% 3143664.00 2.80% 3143664.00 100.00%
by single
Including：
Accrual of bad
debt provision 140355253.57 97.81% 455833.33 0.32% 139899420.24 109016714.23 97.20% 647916.67 0.59% 108368797.56
by portfolio
Including：
Aging portfolio 140355253.57 97.81% 455833.33 0.32% 139899420.24 109016714.23 97.20% 647916.67 0.59% 108368797.56
Total 143498917.57 100.00% 3599497.33 2.51% 139899420.24 112160378.23 100.00% 3791580.67 3.38% 108368797.56
1722023 Annual Report
Accrual of bad debt provision by single：
In RMB
Balance Year-beginning Balance in year-end
Withdr
Name Book Bad debt Book Bad debt awal
Reason
balance provision balance provision propor
tion
Guangdong Taiheng
The enterprise has entered the
Expressway stage of bankruptcy and
3143664.003143664.003143664.003143664.00100.00
liquidation It is not expected to
Development Co.be recovered
Ltd.Total 3143664.00 3143664.00 3143664.00 3143664.00 100.00
Accrual of bad debt provision by portfolio: The aging
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate (%
Within 1 year 131238586.90
1-2 years 9116666.67 455833.33 5.00%
Total 140355253.57 455833.33 /0.32%
Note：The aging
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
(3) Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Reversed or
Category Opening balance Write- Closing balance
Accrual collected Other
off
amount
Accrual of bad debt provision by
3143664.003143664.00
single item
Accrual of bad debt provision by credit
647916.67192083.34455833.33
risk
Total 3791580.67 192083.34 3599497.33
Of which the significant amount of the reversed or collected part during the reporting period
None
1732023 Annual Report
（4）The actual write-off accounts receivable
None
(5) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Proportio Amount of
Amount of Accounts receivable and n of ending bala
Company Name ending balanc Closing balance of contract assets ending total acc
e the contract assets ounts
nce
balance receivabl for bad de
e % bts
Guangdong Union Electronic
104739306.9272.99%
Services Co. Ltd.Guangdong Lulu Traffic
10200000.007.11%455833.33
Development Co. Ltd.Guangdong Jingzhu Expressway
Guangzhu North section Co. 8643475.02 6.02%
Ltd.Guangdong Humen Bridge Co.
8382454.425.84%
Ltd.Guangdong Expressway
6548536.494.56%
Technology Investment Co. Ltd.Total 138513772.85 96.52% 455833.33
（6）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(7)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
3.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 1205472.90 1205472.90
Other receivable 88372734.86 33250771.74
Total 89578207.76 34456244.64
（1） Interest receivable：
None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment
1205472.901205472.90
No.1 Limited partnership enterprise
Total 1205472.90 1205472.90
2）Significant dividend receivable aged over 1 year
1742023 Annual Report
In RMB
Whether with
Balance in
Items Aging Reasons for non-recovery impairment and the
year-end
judgment basis
Guangdong Radio and Television The partnership agreement expires and
Networks investment No.1 Limited Over 5
No it can be
1205472.90 can be recovered after the extension
years recovered in the future
partnership enterprise procedures are completed
Total 1205472.90
（3） Other accounts receivable
1) Other accounts receivable classified
In RMB
Items Balance in year-end Balance Year-beginning
Securities trading settlement funds 30844110.43
Petty cash 3537793.93 4038469.21
On behalf of money 221107620.02 97749481.71
Deposit 2736640.19 26630350.18
Equity transfer payment receivable 39682898.02
Compensation for performance
40092886.12
commitments receivable
Other 2322516.60 2581952.35
Subtotal 309480354.88 161844363.88
Less：Bad debt provision 221107620.02 128593592.14
Total 88372734.86 33250771.74
2） Disclosure by aging
In RMB
Aging Balance in year-end Balance Year-beginningWithin 1 year(Including 1 year） 209212525.26 125683275.60
1-2 years 98008543.71 311707.85
2-3 years 220243.57 3477902.45
Over 3 years 2039042.34 32371477.98
3-4 years 1184699.35 26560.70
4-5 years 23848.70 627314.97
Over 5 years 830494.29 31717602.31
Subtotal 309480354.88 161844363.88
Less：Bad debt provision 221107620.02 128593592.14
Total 88372734.86 33250771.74
1752023 Annual Report
3） According to the bad debt provision method classification disclosure
□Applicable □Not applicable
In RMB
Amount in year-end Balance Year-beginning
Category Book Balance Bad debt provision Book value Book Balance Bad debt provision Book value
Amount Proportion(%) Amount Proportion(%) Amount Proportion(%) Amount Proportion(%)
Accrual of
bad debt
221107620.0271.44%221107620.02100.00%128593592.1479.46%128593592.14100.00%
provision by
single
Including：
Accrual of
bad debt
88372734.8628.56%88372734.8633250771.7420.54%33250771.74
provision by
portfolio
Including：
Aging
673683.890.22%673683.891082461.540.67%1082461.54
portfolio
CSF
6274434.122.03%6274434.1230668819.3918.95%30668819.39
Portfolio
Very low
credit risk
financial 81424616.85 26.31% 81424616.85 1499490.81 0.93% 1499490.81
asset
portfolio
Total 309480354.88 100.00% 221107620.02 71.44% 88372734.86 161844363.88 100.00% 128593592.14 79.46% 33250771.74
1762023 Annual Report
Accrual of bad debt provision by single：
In RMB
Balance Year-beginning Balance in year-end
Name Bad debt Bad debt
Book Balance Book Balance Withdrawal Reason
provision provision proportion
The source of
funds for custody
expenses paid by
Guangzhou-Foshan
Department Expressway on behalf
of Transport
97749481.71 97749481.71 221107620.02 221107620.02 100.00% needs to be further
of
Guangdong defined and the
provision for bad debts
shall be made in full
according to the
principle of prudence
Total 97749481.71 97749481.71 221107620.02 221107620.02
Number of categories of bad debt provision drawn by portfolio:2
Accrual of bad debt provision by portfolio: The Aging
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion
Within 1 year 673683.89
Total 673683.89
Accrual of bad debt provision by portfolio: Other
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion
Cast deposit portfolio 6274434.12
Very low credit risk financial
81424616.85
asset portfolio
Total 87699050.97
The withdrawal amount of the bad debt provision：
In RMB
Stage 1 Stage 2 Stage 3
Expected credit losses for the
Bad Debt Reserves Expected credit losses Expected credit loss over life Total
entire duration (credit
over the next 12 months (no credit impairment)
impairment occurred)
Balance as at January
97749481.7130844110.43128593592.14
12023
Balance as at January
12023 in current
——Transfer to stage II -97749481.71 97749481.71
1772023 Annual Report
Stage 1 Stage 2 Stage 3
Expected credit losses for the
Bad Debt Reserves Expected credit losses Expected credit loss over life Total
entire duration (credit
over the next 12 months (no credit impairment)
impairment occurred)
——Transfer to stage III
-- Reversal to the II stage
-- Reversal to the I stage
Provision in Current Year 123358138.31 123358138.31
Reversal in Current Year
Conversion in Current Year
Write off in Current Year 30844110.43 30844110.43
Other change
Balance as at 31 Dec. 2023 221107620.02 221107620.02
Loss provision changes in current period change in book balance with significant amount
□Applicable √ Not applicable
4）Accounts receivable withdraw reversed or collected during the reporting period
The withdrawal amount of the bad debt provision：
In RMB
Amount of change in the current period
Reversed or
Category Opening balance Closing balance
Accrual collected Write-off Other
amount
Accrual of bad debt
provision by single 128593592.14 123358138.31 30844110.43 221107620.02
item
Total 128593592.14 123358138.31 30844110.43 221107620.02
Of which the significant amount of the reversed or collected part during the reporting period
None
5） Other account receivables actually cancel after write-off
In RMB
Items Amount
Securities settlement and trading funds 30844110.43
Where the write-off of other important receivables is as follows:
In RMB
Whether the
Write-off payment is
Write-off
Unit name Nature of other receivables Reasons for write-off procedure for generated by
amount
performance related party
transactions
Kunlun
Securities trading settlement funds Resolution adopted30844110.43 No
Securities Bankruptcy at the Fifteenth
1782023 Annual Report
Co.Ltd liquidation has been (provisional)
basically completed Meeting of the
and there is basically Tenth Board of
no bankruptcy Directors
property available
for distribution
Total 30844110.43
6） Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations with the Amount Aging Reasons for Proportion %
Company non-settlement
Within 1
Department of Transport of 123358138.31 123358138.31
On behalf of money year 71.45%
Guangdong Province
97749481.71 1-2 years 97749481.71
Temporarily estimate
Guangdong Provincial Freeway the restructuring Within 1
40092886.1212.95%
Co.Ltd. performance year
compensation
Bipi Xiaoju New Within 1
Equity transfer 39682898.02 12.82%
Energy(Shenzhen) Co. Ltd. year
Guangdong Litong Within 1
Vehicle parking 1823397.94
Development Investment Co. year 0.60%
deposit
Ltd. 22980.00 2-3 years
Guangdong Expressway Media Within 1
Advertising revenue 656495.57 0.21%
Co. Ltd. year
Total 303386277.67 98.03% 221107620.02
4.Prepayments
（1）Aging analysis
In RMB
Balance in year-end Balance Year-beginning
Aging Amount Proportion（%） Amount Proportion（%）
Within 1 year 8310359.63 97.90% 7645192.95 98.20%
1-2 years 37806.24 0.45%
2-3 years 140000.00 1.80%
Over 3 years 140000.00 1.65%
Total 8488165.87 7785192.95
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
None
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations Amount Aging Reasons for non- Proportion %
with the settlement
Company
China Ping An Property Insurance Co. Ltd. Non- Within 1 Unliquidated
Guangdong Branch Related 3807386.58 year 44.86%
party
1792023 Annual Report
Related Within 1 Unliquidated
Guangdong Feida Traffic Engineering Co. Ltd 2478186.00 29.20%
party year
Non- Within 1 Unliquidated
PICC Related 1641767.52 year 19.34%
party
Non- Within 1 Unliquidated
First Pacific Davis Property Consultant
Related 152079.63 year 1.79%
(Guangzhou) Co. Ltd
party
Non- Over 3 Unliquidated
Excellence Appraisal Related 140000.00 years 1.65%
party
Total 8219419.73 96.84%
（3） Other debt investments coming due within 1 year
□Applicable□Not applicable
5.Other current assets
In RMB
Items Year-end balance Year-beginning balance
Advance tax payment 34805.71 1931251.29
VAT retention tax credits 111143.99
Total 34805.71 2042395.28
1802023 Annual Report
6. Other Equity instrument investment
In RMB
Losses
Gains accumulated Reason designated as
Gains included in Losses included in accumulated in Dividend
in other being measured at
other other other income
comprehensive fair value and change
Name Closing balance Opening balance comprehensive comprehensive comprehensive recognized in
income at the end being included in
income in the income in the income at the end the current
of the current other comprehensive
current period current period of the current period
period income
period
Guangle
Expressway Co. 796722655.90 779705656.29 17016999.61 48374354.17 26551300.00
Ltd.Guangdong Radio
and Television
Networks
investment No.1 55434894.13 55365396.61 69497.52 5434894.13
Limited
partnership
enterprise
China Everbright
682239337.60722232678.0839993340.48164678460.8044698439.36
Bank Co. Ltd.Huaxia Securities
Co. Ltd. 5400000.00（Notes1）
Huazheng Asset
Management Co. 1620000.00
Ltd.（Notes2）
Total 1534396887.63 1557303730.98 17086497.13 39993340.48 218487709.10 7020000.00 71249739.36
Note 1: Huaxia Securities Co. Ltd. has been severely insolvent. In April 2008 the CSRC sent a letter agreeing to Huaxia Securities Co. Ltd. to apply for
bankruptcy. In August 2008 the Beijing No.2 Intermediate People's Court officially accepted the bankruptcy liquidation application.Note 2: Huazheng Asset Management Co. Ltd. has been severely insolvent.
1812023 Annual Report
Breakdown disclosure of investment in non-tradable equity instruments in the current period
In RMB
Amount of other Reasons for other
Dividend Reasons for designation as measured
Cumulative consolidated income consolidated income
Items income Cumulative gain at fair value and changes included in
loss transferred to retained transferred to retained
recognized other comprehensive income
earnings earnings
Guangle Expressway Co. Ltd. Non-transactional purpose for26551300.00 48374354.17
shareholding
Guangdong Radio and
Television Networks investment Non-transactional purpose for
5434894.13
No.1 Limited partnership shareholding
enterprise
China Everbright Bank Co. Ltd. Non-transactional purpose for44698439.36 164678460.80
shareholding
Huaxia Securities Co. Ltd. Non-transactional purpose for5400000.00
shareholding
Huazheng Asset Management Non-transactional purpose for
1620000.00
Co. Ltd. shareholding
Total 71249739.36 218487709.10 7020000.00
7. Long-term equity investment
In RMB
Increase/decrease Clos
ing
Withd bala
Initial
balance of Investment profit rawalAdjustment of Cash bonus or nce
of
Investees Opening balance the other Changes of profits Othe Closing balance of
impairme Additional Negative and loss impai
nt investment investment recognized under comprehensive other equity announced to r
impa
rment
provision income issue irme
the equity method provis nt
ion prov
ision
1822023 Annual Report
Increase/decrease Clos
ing
Withd bala
Initial
balance of Investment profit rawal nceAdjustment of Cash bonus or
Investees Opening balance the
of of
impairme Additional Negative and loss
other Changes of profits Othe Closing balance
impai impa
nt investment investment recognized under comprehensive other equity announced to rrment irme
provision income issue
the equity method provis nt
ion prov
ision
I. Joint venture
2. Affiliated Company
Zhaoqing
Yuezhao
310209765.8756894249.13367104015.00
Highway Co.Ltd.Guangdong
Jiangzhong 110250000
446883150.4011239149.0710685619.81557686679.66
Expressway Co. .00
Ltd.Ganzhou
Gankang
163154438.0022400381.124500000.00181054819.12
Expressway Co.Ltd.Ganzhou Kangda
Expressway Co. 246268935.13 40160769.85 28500000.00 257929704.98
Ltd.Shenzhen
Huiyan 348669767.32 29252416.66 377922183.98
Expressway Co.
1832023 Annual Report
Increase/decrease Clos
ing
Withd bala
Initial
balance of Investment profit rawal nceAdjustment of Cash bonus or
the of ofInvestees Opening balance
impairme Additional Negative and loss
other Changes of profits Othe Closing balance
impai impa
nt investment investment recognized under comprehensive other equity announced to rrment irme
provision income issue
the equity method provis nt
ion prov
ision
Ltd.Guoyuan
Securities Co. 1027100533.4987867627.42 44637991.99 10114877.17 2424.19 15522387.30
7
Ltd.Guangdong
Yueke Science
and Technology 219031496.39 10944601.74 8117988.03 221858110.10
Microfinance
Co. Ltd.Hunnan Lianzhi
Technology 97539945.74 4305442.82 -103373.64 101742014.92
Co. .Ltd.SPIC Yuetong
Qiyuan Chip
Power 4981238.50 -1801011.73 3180226.77
Technology Co.Ltd.Shenzhen
Garage Electric
98698677.5394985599.50-2321262.031391816.00
Pile Technology
Co. Ltd
1842023 Annual Report
Increase/decrease Clos
ing
Withd bala
Initial
balance of Investment profit rawal nceAdjustment of Cash bonus or
of of
Investees Opening balance the
impairme Additional Negative and loss
other Changes of profits Othe Closing balance
impai impa
nt investment investment recognized under comprehensive other equity announced to rrment irme
provision income issue
the equity method provis nt
ion prov
ision
Subtotal 110250000 3095578288.02923305042.30 94985599.50 215712728.62 10114877.17 -100949.45 68717811.14.000
Total 110250000 3095578288.02923305042.30 94985599.50 215712728.62 10114877.17 -100949.45 68717811.14.000
The recoverable amount is determined by the net amount of fair value minus disposal expenses
□Applicable□Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable□Not applicable
1852023 Annual Report
8.Other non-current financial assets
In RMB
Items Closing balance Opening balance
Classified as financial assets measured at fair value and whose changes are included in
the current profit and loss
Including：Equity investment of Beijing Institute of Architectural Design Co. Ltd. 84159575.05
Equity investment of CMST Nanjing Intelligent Logistics Technology Co. Ltd. 99697192.95 101400000.00
Total 183856768.00 101400000.00
9. Investment property
(1) Investment property adopted the cost measurement mode
√ Applicable □Not applicable
In RMB
Houses and
Items Land use right Construction Total
buildings in process
I. Original value
1.Opening balance 12664698.25 2971831.10 15636529.35
2.Increased amount of the period
（1）Outsourcing
(2)Inventory Fixed assets and Construction project
into
(3) )Increased of Enterprise consolidation
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 12664698.25 2971831.10 15636529.35
II.Accumulated depreciation accumulated
amortization
1.Opening balance 10989739.14 1978645.28 12968384.42
2.Increased amount of the period 147549.12 73569.36 221118.48
(1)Withdrawal or amortization 147549.12 73569.36 221118.48
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance 11137288.26 2052214.64 13189502.90
1862023 Annual Report
Houses and
Items Land use right Construction Total
buildings in process
III. Impairment provision
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
3.Decreased amount of the period
（1）Disposal
（2）Other Out
4.Closing balance
IV. Book value
1.Closing book value 1527409.99 919616.46 2447026.45
2.Opening book 1674959.11 993185.82 2668144.93
The recoverable amount is determined by the net amount of fair value minus disposal expenses
□Applicable□Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable□Not applicable
（2） Details of investment property failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
Houses and Building 850099.38
facilities Not accreditation
Total 850099.38
10. Fixed assets
In RMB
Items Year-end balance Year-beginning balance
Fixed assets 9010154405.32 10098252638.07
liquidation of fixed assets 14307.60
Total 9010168712.92 10098252638.07
1872023 Annual Report
(1) List of fixed assets
In RMB
Jingzhu Electricity
Items Guangfo
Guanghui House and Machinery Transportatio
Fokai Expressway Expressway equipment Total
Expressway Expressway buildings equipment n equipment
Guangzhu section and other
I. Original price
1.Opening balance 1460270190.66 10916901136.52 6824139977.48 5136471234.45 664476347.75 1849144772.30 61642618.63 142268138.54 27055314416.33
2.Increased amount of
27301711.001079370.0020897406.992551749.4210501826.0262332063.43
the period
（1）Purchase 6044149.68 2551749.42 8627511.45 17223410.55
（2）Transfer of project
27301711.001079370.0014853257.3166918.0043301256.31
under construction
(3)Increased of Enterprise
consolidation
（4）Other 1633920.57 1807396.57 1807396.57
3.Decreased amount of
23466.0015580677.36137111020.723771817.006820066.88163307047.96
the period
（1）Disposal or scrap 14920857.18 135683233.72 3771817.00 5186146.31 159562054.21
（2）Disposition
subsidiary
（3）Other out 23466.00 659820.18 3061707.57 3744993.75
4.Closing balance 1460270190.66 10944202847.52 6825195881.48 5136471234.45 648895670.39 1731297238.00 60422551.05 147583818.25 26954339431.80
II. Accumulated
depreciation
1.Opening balance 1460270190.66 5857558616.40 4285503165.86 3319516101.13 480209669.57 1410747604.61 47930132.30 91204984.63 16952940465.16
2.Increased amount of the
345960409.86430991126.10197940217.5830510465.15103722845.612337521.6612561796.111124024382.07
period
（1）Withdrawal 345960409.86 430991126.10 197940217.58 30510465.15 103722845.61 2337521.66 12518764.22 1123981350.18
1882023 Annual Report
Jingzhu Electricity
Guangfo Guanghui House and Machinery TransportatioItems Fokai Expressway Expressway Total
Expressway Expressway buildings equipment n equipment
equipment
Guangzhu section and other
（2）Other 43031.89 43031.89
3.Decreased amount of
11290376.08126472112.023434386.154915356.62146112230.87
the period
(1)Disposal or scrap 11290376.08 126429080.13 3434386.15 4915356.62 146069198.98
（2）Disposition
subsidiary
（3）Other out 43031.89 43031.89
4.Closing balance 1460270190.66 6203519026.26 4716494291.96 3517456318.71 499429758.64 1387998338.20 46833267.81 98851424.12 17930852616.36
III.Impairment provision
1.Opening balance 2889394.16 1231918.94 4121313.10
2.Increased amount of the
10394796.4548219.5110443015.96
period
(1)Withdrawal 10394796.45 48219.51 10443015.96
（2）Other
3.Decreased amount of the
1231918.941231918.94
period
(1)Disposal or scrap 1231918.94 1231918.94
（2）Disposition
subsidiary
4.Closing balance 2889394.16 10394796.45 48219.51 13332410.12
IV. Book value
1.Closing book value 4740683821.26 2108701589.52 1619014915.74 146576517.59 332904103.35 13589283.24 48684174.62 9010154405.32
2.Opening book 5059342520.12 2538636811.62 1816955133.32 181377284.02 437165248.75 13712486.33 51063153.91 10098252638.07
1892023 Annual Report
(2)Temporarily idle fixed assets
None
(3) Fixed assets leased out from operation lease
In RMB
Items Year-end balance
House and buildings 20723774.36
Machinery equipment 484000.00
（4） Details of fixed assets failed to accomplish certification of property
In RMB
Items Book balance Reason
Transportation and other ancillary
House and buildings 131882222.24
facilities，Not accreditation.
（5）liquidation of fixed assets
□Applicable □Not applicable
The recoverable amount is determined by the net amount of fair value minus disposal expenses
□Applicable □Not applicable
In RMB
How to
determine fair
Recoverable Impairment Basis for determining
Items Book value value and Key parameter
amount amount key parameters
disposal
expenses
Market transaction
The fair value
price: ask relevant
adopts the
Market resource recycling
Demolition of market inquiry
transaction merchants for
fixed assets in method and the
price business quotation and
reconstruction 10394796.45 10394796.45 disposal
evaluation and evaluation; disposal
and expansion expenses are
disposal cost : including taxes
projects related to the
expenses and fees related to asset
disposal of
disposal and handling
assets
fees.Total 10394796.45 10394796.45
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable□Not applicable
（6）liquidation of fixed assets
In RMB
Items Year-end balance Year-beginning balance
Transportation equipment 14307.60
Total 14307.60
1902023 Annual Report
11. Project under construction
In RMB
Items Year-end balance Year-beginning balance
Project under construction 1960092562.22 753565502.12
Total 1960092562.22 753565502.12
1912023 Annual Report
（1）Project under construction
In RMB
Year-end balance Year-beginning balance
Items Book balance Provision for Book value Book balance Provision for Book value
devaluation devaluation
Reconstruction and Expansion of Nansha-Zhuhai
1648394518.481648394518.48553543942.17553543942.17
section of Guangzhou-Macao Expressway
Reconstruction and Expansion of Fokai
197907850.29197907850.29152274277.83152274277.83
Expressway Sanbao to Shuikou
Expansion Project of Luogang-Lingkeng Section 21813587.29 21813587.29 14367022.40 14367022.40
Video encryption and based on video ai abnormal
19951400.7319951400.73
event perception engineering
Guangzhou-Shantou Railway Crossing project 19446564.43 19446564.43 10576570.43 10576570.43
Jiujiang Bridge navigable hole anti-collision
16070965.6516070965.65
reinforcement project
Jiangxi-Shenzhen high-speed railway cross-
15664172.9815664172.9815664172.9815664172.98
section expansion project
Boluo Central Station office and living facilities
13281042.3713281042.373768689.373768689.37
renovation and expansion project
Tanwei Bridge Ship Collision Project 1749246.00 1749246.00
Other 7562460.00 7562460.00 1621580.94 1621580.94
Total 1960092562.22 1960092562.22 753565502.12 753565502.12
(2) Changes of significant construction in progress
In RMB
Including:
capitalization Capitalization
Capitalization Source
Name of Opening Transferred to Other Project of of
Budget Increase End balance Proportion % of of
project balance fixed assets decrease process interest interest
interest funding
this rate (%)
period
Reconstruction
and Expansion
13735989200.00 553543942.17 1094850576.31 1648394518.48 12.00% 12.00% 54685762.73 44783325.90 2.97% Other
of Nansha-
Zhuhai section
1922023 Annual Report
Including:
capitalization Capitalization
Capitalization Source
Name of Opening Transferred to Other Project of of
Budget Increase End balance Proportion % of of
project balance fixed assets decrease process interest interest
interest funding
this rate (%)
period
of Guangzhou-
Macao
Expressway
Reconstruction
and Expansion
of Fokai
3426210000.00 152274277.83 72935283.46 27301711.00 197907850.29 82.22% 82.22% 77798477.87 4582922.05 3.28% Other
Expressway
Sanbao to
Shuikou
Jiujiang
Bridge
navigable hole
36419600.00 16070965.65 16070965.65 44.13% 46.88% Other
anti-collision
reinforcement
project
Video
encryption and
based on video
ai abnormal 33963500.00 19951400.73 19951400.73 58.74% 58.74% Other
event
perception
engineering
Jiangxi-
Shenzhen
high-speed
railway cross- 16966900.00 15664172.98 15664172.98 92.32% 92.32% Other
section
expansion
project
Guangzhou-
21460000.00 10576570.43 8869994.00 19446564.43 90.62% 90.62% Other
Shantou
1932023 Annual Report
Including:
capitalization Capitalization
Capitalization Source
Name of Opening Transferred to Other Project of of
Budget Increase End balance Proportion % of of
project balance fixed assets decrease process interest interest
interest funding
this rate (%)
period
Railway
Crossing
project
Boluo Central
Station office
and living
facilities 17000000.00 3768689.37 9512353.00 13281042.37 78.12% 78.12% Other
renovation and
expansion
project
Preliminary
work of the
renovation and
expansion
321541000.00 14367022.40 7446564.89 21813587.29 6.78% 6.78% Other
project from
Luogang to
Lingkeng
section
Total 17609550200.00 750194675.18 1229637138.04 27301711.00 1952530102.22 132484240.60 49366247.95
1942023 Annual Report
(3)Provision for impairment of construction projects in the current period
None
（4）Provision for impairment of construction in this period
□Applicable□Not applicable
（5） Engineering Materials：
None
12.Use right assets
（1）List of Use right assets
In RMB
House and Machinery Transportation Other
Items Total
buildings equipment equipment
I. Original price
1.Opening balance 21487031.29 357112.19 1007747.00 22851890.48
2.Increased amount of the period 30634734.72 673169.06 31307903.78
（1）New lease 30634734.72 673169.06 31307903.78
（2）Other
3.Decreased amount of the period 21487031.29 21487031.29
（1）Transfer or hold for sale
（2）Disposal subsidiary
（3）Other out 21487031.29 21487031.29
4.Closing balance 30634734.72 357112.19 673169.06 1007747.00 32672762.97
II. Accumulated depreciation
1.Opening balance 18417455.29 142844.88 214034.88 18774335.05
2.Increased amount of the period 9902925.00 71422.44 336584.52 107017.44 10417949.40
（1）Withdrawal 9902925.00 71422.44 336584.52 107017.44 10417949.40
（2）Other increase
3.Decreased amount of the period 21487031.29 21487031.29
（1）Disposition
（2）Transfer or hold for sale
（3）Other out 21487031.29 21487031.29
4.Closing balance 6833349.00 214267.32 336584.52 321052.32 7705253.16
III. Impairment provision
1.Opening balance
2.Increased amount of the period
（1）Withdrawal
（2）Other increase
3.Decreased amount of the period
（1）Transfer or hold for sale
（2）Disposal subsidiary
（3）Other out
4.Closing balance
1952023 Annual Report
House and Machinery Transportation Other
Items Total
buildings equipment equipment
IV. Book value
1.Closing book value 23801385.72 142844.87 336584.54 686694.68 24967509.81
2.Opening book value 3069576.00 214267.31 793712.12 4077555.43
（2）Impairment test of the use right assets
□Applicable□Not applicable
13. Intangible assets
(1) List of intangible assets
In RMB
The Turnpike
Items Land use right Patent Non-patented Software Total
right technology franchise
I. Original price
1.Opening balance 2701738.76 38254516.12 318348741.86 359304996.74
2.Increased amount of the
1248863.061248863.06
period
(1) Purchase 1248863.06 1248863.06
(2)Internal Development
(3)Increased of Enterprise
Combination
3.Decreased amount of the
12037940.9012037940.90
period
（1）Disposal 12037940.90 12037940.90
4.Closing balance 2701738.76 27465438.28 318348741.86 348515918.90
II.Accumulated amortization
1.Opening balance 2360122.39 32364262.87 77808140.04 112532525.30
2.Increased amount of the
21832.592105560.9024565188.0126692581.50
period
(1) Withdrawal 21832.59 2105560.90 24565188.01 26692581.50
3.Decreased amount of the
12037940.9012037940.90
period
（1）Disposal 12037940.90 12037940.90
1962023 Annual Report
Items Land use right Patent Non-patented
The Turnpike
Software Total
right technology franchise
4.Closing balance 2381954.98 22431882.87 102373328.05 127187165.90
III. Impairment provision
1.Opening balance
2.Increased amount of the
period
(1) Withdrawal
3.Decreased amount of the
period
（1）Disposal
4.Closing balance
IV. Book value
1.Closing book value 319783.78 5033555.41 215975413.81 221328753.00
2.Opening book value 341616.37 5890253.25 240540601.82 246772471.44
At the end of this period there is no intangible assets formed through the company's internal research.⑵Details of Land use right failed to accomplish certification of property
In RMB
Reason for not obtaining the title
Items Book value
certificate
Gonghe Town Land 319783.78 Reasons left over from history
（3） Impairment test of Intangible assets
□Applicable□Not applicable
14. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment provisions 16931907.45 4232976.86 7912893.77 1978223.45
Deductible loss 363420806.96 90855201.74
Asset appraisal appreciation
106786384.5026696596.13120375258.2430093814.56
depreciation and amortization
Deferred income 10976324.09 2744080.99 21009212.70 5252303.27
Operation lease 23963150.05 5990787.46 2668029.63 667007.41
Advance lease 686694.68 171673.67 793712.12 198428.03
Total 159344460.77 39836115.11 516179913.42 129044978.46
1972023 Annual Report
(2) Deferred income tax liabilities had not been off-set
In RMB
Balance in year-end Balance Year-beginning
Items Deductible DeductibleDeferred income Deferred income
temporary temporary
tax liabilities tax liabilities
difference difference
Changes in the fair value of other
218487709.1054621927.27241394552.4560348638.11
equity instruments
Deductible temporary differences in the
843459192.41210864798.09965577119.54241394279.90
formation of asset impairment
Difference of amortization method of
11266760.172816690.059854438.832463609.71
franchise of toll road
Changes in the fair value of trading
12856768.003214192.0010400000.002600000.00
financial assets
Tax accounting difference of use right
24967509.816241877.434077555.431019388.86
asset
Tax accounting differences of projects
26766856.806691714.20
under construction
Total 1137804796.29 284451199.04 1231303666.25 307825916.58
(3) Deferred income tax assets or liabilities listed by net amount after off-set
None
(4)Details of income tax assets not recognized
In RMB
Items Balance in year-end Balance in year-begin
Deductible temporary difference 228127620.02 135613592.14
Deductible loss 18536190.43
Total 228127620.02 154149782.57
(5)Deductible losses of the un-recognized deferred income tax asset will expire in the following years
In RMB
Year Balance in year-end Balance in year-begin Remark
20233129535.72
20243618779.07
20253571100.29
20263889857.99
20274326917.36
Total 18536190.43
15 .Other non-current assets
In RMB
Balance in year-end Balance Year-beginning
Items Book balance Provision Book value Book balance Provision Book value
for for
devaluation devaluation
1982023 Annual Report
Prepaid engineering fees 337943920.69 337943920.69 6258116.72 6258116.72
Prepaid business tax 1714291.80 1714291.80 2116662.12 2116662.12
Total 339658212.49 339658212.49 8374778.84 8374778.84
16.Assets with restricted right of ownership
In RMB
Balance in year-end Balance in year-begin
Items Book Restriction Restriction Book Restriction Restriction
Book value Book value
balance type information balance type information
Special Special
Monetary Special funds for Special funds for
1221200.001221200.001221200.001221200.00
fund funds land funds land
reclamation reclamation
Notes
receivable
Inventory
Fixed
assets
Intangible
assets
Total 1221200.00 1221200.00 1221200.00 1221200.00
17. Short-term Borrowing
（1）Short-term Borrowing
In RMB
Total Balance in year-end Balance Year-beginning
Credit Borrowing 110000000.00 430000000.00
Interest payable not due 85708.33 387597.20
Total 110085708.33 430387597.20
（2）Overdue short-term borrowings
None
18.Account payable
（1） List of account payable
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 114450217.03 106284617.63
1-2 years（including2 years） 36069234.79 15315242.17
2-3 years（including 3 years） 7388237.28 2693624.18
Over 3 years 56542901.70 73495298.79
Total 214450590.80 197788782.77
（2）Significant payable aging more than 1 year
1992023 Annual Report
In RMB
Items Balance in year-end Reason
Foshan Land and resources Bureau. 30507598.21 Unsettled
Heshan Land and resources Bureau 9186893.60 Unsettled
Poly Changda Engineering Co. Ltd. 4847148.30 Unsettled
Foshan Chancheng District Zhang Cha
4626817.32 Unsettled
Sub-district Office
Total 49168457.43
19.Other payable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend payable 27809510.32 59994517.46
Other payable 122484006.11 131173042.77
Total 150293516.43 191167560.23
（1）Interest payable
None
（2）Dividends payable
In RMB
Items Balance in year-end Balance Year-beginning
Common stock dividends 27809510.32 25694517.46
Dividends payable- Guangdong Provincial Freeway
11550000.00
Co.Ltd.Dividends payable-Guangdong Zhujiang Highway
21000000.00
and Bridge Investment Co. Ltd
Dividends payable-HZCI 1750000.00
Total 27809510.32 59994517.46
Other explanations including significant dividends payable that have not been paid for more than 1 year it shall
disclose the reasons for non-payment:
Note: Including significant unpaid dividends payable over one year the unpaid reason shall be disclosed:
Final dividend payable 25694517.46 yuan for more a year in unpaid dividends to shareholders over the year was
mainly due to non- payment of shareholder dividends did not provide information on interest- bearing bank did
not share reform of shareholders to receive dividends or provide application to
to receive dividends the bank information is incorrect resulting in failure to pay a dividend or refund.
（3）Other accounts payable
(1) Other accounts payable listed by nature of the account
In RMB
Items Year-end balance Year-Beginning balance
Estimated project cost 30309146.51 40097538.05
Deposit warranty and security deposit 61910555.42 64205413.61
2002023 Annual Report
Other 30264304.18 26870091.11
Total 122484006.11 131173042.77
(2) Other significant accounts payable with aging over one year
In RMB
Items Closing balance Unpaid/un-carry over reason
Poly Changda Highway Engineering Co.
13242121.20 The settlement conditions are not met
Ltd.Yayao to Xiebian extension 12196943.29 The settlement conditions are not met
Guangdong Guanyue Road & Bridge
4964371.30 The settlement conditions are not met
Co. Ltd.China Railway 18th Bureau Group Co.
3735837.56 The settlement conditions are not met
Ltd
CCCC First Navigation Engineering
2845541.16 The settlement conditions are not met
Bureau Co. Ltd.Guangdong Nengda Highway
2328072.70 The settlement conditions are not met
Maintenance Co.Ltd.Guangdong Zhubo Engineering Road &
2230104.12 The settlement conditions are not met
Bridge Co. Ltd.Guangdong Highway Construction Co.
2000000.00 The settlement conditions are not met
Ltd.Total 43542991.33
20. Prepayment received
(1) List of Prepayment received
In RMB
Items Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 1564332.74 1913639.06
1-2 years（Including 2 years） 331925.18 805117.91
2-3 years（Including 3 years） 750973.00
Total 2647230.92 2718756.97
（2）Significant payable aging more than 1 year
In RMB
Items Balance in year-end Reason
Hebei Jianhong Power Engineering Co.
1076400.79 Unsettled
Ltd.Total 1076400.79 --
21. Payable Employee wage
（1）Payable Employee wage
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
I. Short-term compensation 20660328.60 459970995.41 460008337.83 20622986.18
II.Post-employment benefits -
68688651.1668688651.16
defined contribution plans
2012023 Annual Report
III. Dismissal benefits 1573216.92 1573216.92
Total 20660328.60 530232863.49 530270205.91 20622986.18
（2）Short-term Remuneration
In RMB
Items Year-beginning Increase in the Decrease in the Year-end balance
balance current period current period
1.Wages bonuses allowances
465063.49346321038.47346321038.47465063.49
and subsidies
2.Employee welfare 32119814.97 32119814.97
3. Social insurance premiums 29026690.11 29026690.11
Including ：Medical
20038879.2720038879.27
insurance
Work injury insurance 1174708.61 1174708.61
Other 7813102.23 7813102.23
4.Public reserves for housing 39662696.00 39662696.00
5.Union funds and staff education
17883045.4011125007.5611170165.6217837887.34
fee
8.Other 2312219.71 1715748.30 1707932.66 2320035.35
Total 20660328.60 459970995.41 460008337.83 20622986.18
（3）Defined contribution plans listed
In RMB
Balance Year- Increase in this period Payable in this period Balance in year-end
Items
beginning
1. Basic old-age
39952111.7939952111.79
insurance premiums
2.Unemployment
1981146.541981146.54
insurance
3.Enterprise annuity
26755392.8326755392.83
payment
Total 68688651.16 68688651.16
22. Tax Payable
In RMB
Items Balance in year-end Balance Year-beginning
VAT 13544679.07 9619067.45
136932738.0458889929.38
Enterprise Income tax
Individual Income tax 2928147.86 2552347.21
City Construction tax 863204.59 633666.06
Education subjoin 417048.11 306387.03
Locality Education subjoin 259424.11 185315.25
Property tax 14778.41 60799.58
Stamp tax 163570.46 60261.45
2022023 Annual Report
Total 155123590.65 72307773.41
23. Non-current liabilities due within 1 year
In RMB
Items Balance year-end Year-beginning balance
Long-term loans due within 1 year 151828779.87 72870082.19
Payable Bonds due within 1 year 720607149.69 40679999.99
Long-term payable due within 1 year 495283.01 944339.62
Lease liabilities due within 1 year 10480947.08 2517045.16
Total 883412159.65 117011466.96
24.Other current liabilities
In RMB
Items Balance year-end Year-beginning balance
Short term payable bonds 368676.26 600639.56
Tax to be rewritten 500122916.67
Total 368676.26 500723556.23
25. Long-term loan
(1) Category of long-term loan
In RMB
Items Balance year-end Year-beginning balance
Pledge loans 14525000.00
Credit loan 6090651225.00 5619259650.00
Interest payable when not due 5893604.87 5680782.19
Less:Long-term loans due within one
151828779.8772870082.19
year（Note VII.23）
Total 5944716050.00 5566595350.00
Other explanations including interest rate range: on December 31 2023 the annual interest rate range of credit
loans was 2.75%-3.40%.
26.Bond payable
（1）Bond payable
In RMB
Items Balance year-end Year-beginning balance
Medium- term note 1429328483.63 1428381232.94
Interest payable when not due 40680000.01 40679999.99Less:Long-term loans due within one year（Note
720607149.6940679999.99VII.23）
Total 749401333.95 1428381232.94
2032023 Annual Report
（2）Changes of bonds payable(Not including the other financial instrument of preferred stock and perpetual capital securities that classify as financial liability
In RMB
The
curr Overflow Whe
Name of the
Book value Intere
Issue Opening Withdraw Pay in current Closing
Period Issue amount ent discount ther
bond st rate date balance interest at par period balance defa
issu amount ult
e
19
Guangdong 680000000.0 4.00 2019.2.2 2019.3.1- 27200000.0 27200000.0 702730437.3
680000000.00 702279764.69 -450672.69 No
Expressway 0 % 7 2024.3.1 0 0 8
MTN001
20
Guangdong 750000000.0 3.00 2020.3.1 2020.3.17- 22500000.0 22500000.0 767278046.2
750000000.00 766781468.24 -496578.00 No
Expressway 0 % 3 2025.3.17 2 0 6
MTN001
Less: Bonds
payable and 720607149.6
40679999.99 No
due within 1 9
year
1430000000.01428381232.949700000.049700000.0749401333.9
Total —— -947250.69 ——
04205
2042023 Annual Report
(3) Note to conditions and time of share transfer of convertible bonds
None
（4）Other financial instruments that are classified as financial liabilities
None
27.Lease liabilities
In RMB
Items Balance year-end Year-beginning balance
Long-term lease liabilities 24964446.02 2709232.95
Less：Financing costs are not recognized 1001295.97 41203.32
Less:Long-term loans due within one year(Note
10480947.082517045.16
VII.23)
Total 13482202.97 150984.47
28. Long-term payable
In RMB
Items Balance year-end Year-beginning balance
Long-term payable 2022210.11 2517493.12
Total 2022210.11 2517493.12
(1) Long-term payable listed by nature of the account
In RMB
Items Balance year-end Year-beginning balance
Non-operating asset payable 2022210.11 2022210.11
Medium term bill underwriting fee 495283.01 1439622.63
Less:Long-term loans due within one year(Note VII.23) 495283.01 944339.62
Total 2022210.11 2517493.12
29. Deferred income
In RMB
Items Opening balance Increase Decrease Closing balance Cause
Government
21009212.70385026614.0010059502.61395976324.09
subsidy
Lease income 40073768.93 692495.24 7662679.72 33103584.45
Total 61082981.63 385719109.24 17722182.33 429079908.54 --
2052023 Annual Report
30. Stock capital
In RMB
Changed（+，-）Balance Year- Issuance
Bonus Capitalization Balance in year-end
beginning of new Other Subtotal
shares of public reserve
share
Total
of
2090806126.002090806126.00
capital
shares
31. Capital reserves
In RMB
Year- beginning Increase in the current Decrease in the
Items Year-end balance
balance period current period
Share premium 508711146.99 40092886.12 548804033.11
Other capital reserves 234422410.04 2424.19 103373.64 234321460.59
Total 743133557.03 40095310.31 103373.64 783125493.70
- The situation of change in the current capital reserve is as follows:
1.The reason for the increase of capital reserve-share capital premium in the current period is that the performance
commitment compensation receivable from Guangdong Provincial Freeway Co.Ltd.. is RMB 40092886.12 due
to business merger under the same control;
2.Hunan Lianzhi Technology Co. Ltd an associate of Yuegao Capital (Holdings) Guangzhou Co. Ltd-a
subsidiary to the Company repurchased the equity of other shareholders resulting in a change in the long-term
equity investment of the subsidiary accounted for by the equity method with a decrease in the capital reserve of
103373.64 yuan.
3. The capital reserve of Guoyuan Securities Co. Ltd. an associated enterprise has changed in the current period.
resulting in an increase in the capital reserve of 2424.19 yuan.
2062023 Annual Report
32. Other comprehensive income
In RMB
Amount of current period
Less：Amount Less：Prior period
transferred into profit and included in other After-tax
Year-beginning Amount After-tax attribute
Items Year-endloss in the current period composite income Less：Income attribute to
balance incurred before to the parent balance
that recognied into other transfer to retained tax expenses minority
income tax company
comprehensive income in income in the shareholder
prior period current period
1.Other comprehensive
income will be reclassified
181045914.34-22906843.35-5726710.84-17180132.51163865781.83
into income or loss in the
future
Changes in fair value of
investments in other equity 181045914.34 -22906843.35 -5726710.84 -17180132.51 163865781.83
instruments
2.Other comprehensive
income reclassifiable to
-10412257.6710114877.1710114877.17-297380.50
profit or loss in subsequent
periods
Including：Share of other
comprehensive income of
the investee that cannot be
-10412257.6710114877.1710114877.17-297380.50
transferred to profit or loss
accounted for using the
equity method
Total of other
170633656.67-12791966.18-5726710.84-7065255.34163568401.33
comprehensive income
2072023 Annual Report
33. Surplus reserve
In RMB
Items Year-beginning Increase in the current Decrease in the current Year-end balance
balance period period
Statutory surplus
1373056469.02147570987.321520627456.34
reserve
Total 1373056469.02 147570987.32 1520627456.34
34. Retained profits
In RMB
Items Amount of this period Amount of last period
Before adjustments: Retained profits in last period end 4698029354.09 4760618543.78
Adjust the total undistributed profits at the beginning of the
510117.61
period
After adjustments: Retained profits at the period beginning 4698029354.09 4761128661.39
Add：Net profit belonging to the owner of the parent
1633811033.681276341322.98
company
Less: Statutory surplus reserve 147570987.32 147681138.46
Common stock dividend payable 894865021.93 1191759491.82
Retained profit at the end of this term 5289404378.52 4698029354.09
As regards the details of adjusted the beginning undistributed profits
(1)As the retroactive adjustment on Enterprise Accounting Standards and its related new regulations the
affected beginning undistributed profits are RMB510117.61.
35.Operation income and operation cost
In RMB
Amount of this period Amount of last period
Items
Income Cost Income Cost
Main operation 4810921181.65 1707788447.62 4098772102.50 1553813332.80
Other operation 68145766.54 33029810.55 69862011.48 32535702.68
Total 4879066948.19 1740818258.17 4168634113.98 1586349035.48
Which the net profit before and after deducting non-recurring gains and losses is lower or whether it is negative
□Yes□No
Breakdown information of operating income and operating cost:
In RMB
Amount of this period Amount of last period
Contract classification Income Cost Income Cost
Business
Including：Toll income 4810921181.65 1707788447.62 4095766725.59 1550367576.44
Advertising and other
35835539.3729101132.8937329930.0832039447.82
revenue
Lease income 32310227.17 3928677.66 35537458.31 3942011.22
Total 4879066948.19 1740818258.17 4168634113.98 1586349035.48
2082023 Annual Report
Amount of this period Amount of last period
Contract classification Income Cost Income Cost
Area
Including：Guangdong 4879066948.19 1740818258.17 4168634113.98 1586349035.48
Total 4879066948.19 1740818258.17 4168634113.98 1586349035.48
36. Business tax and subjoin
In RMB
Items Amount of this period Amount of last period
Urban construction tax 9225865.33 7921866.68
Education surcharge 4442563.50 3799071.81
Property tax 2721041.99 4229458.96
Land use tax 2944638.40 3006644.73
Vehicle use tax 75872.65 75577.43
Stamp tax 292097.60 338371.08
Business tax 370495.32 370495.32
Locality Education surcharge 2955331.98 2526337.62
Total 23027906.77 22267823.63
37. Administrative expenses
In RMB
Items Amount of current period Amount of previous period
Wage 131055433.95 134410035.06
Depreciation of fixed assets 9647982.73 10449720.47
Intangible assets amortization 1590376.26 1834472.02
Low consumables amortization 1078568.34 831662.81
Rental fee and Management fee 13337176.42 12614151.08
Office expenses 8062827.48 7819756.53
Travel expenses 839933.40 470595.17
Consultation expenses 839977.37 1294905.66
The fee for hiring agency 3781983.80 4182360.31
Listing fee 703481.20 731441.20
Information cost and maintenance fee 3549110.16 3267275.05
Other 14974687.90 13519706.10
Total 189461539.01 191426081.46
38.R& D expenses
In RMB
Items Amount of this period Amount of last period
Wage 1613486.50
Entrusted development fee 3245205.00 12554604.00
2092023 Annual Report
Material cost 412566.35
Depreciation 5521.90
Office expenses 3957.92
Repairs cost 391.15
Total 1245.30
Total 3245205.00 14591773.12
39.Financial expenses
In RMB
Items Amount of this period Amount of last period
Interest expenses 214338558.69 238444227.57
Interest income -94065812.39 -47404858.97
Exchange Income and loss（Gain-） 716683.26 -988123.62
Bank commission charge 778873.21 1012828.60
Other 6478.98 7077.52
Total 121774781.75 191071151.10
40.Other gains
In RMB
Items Amount of this period Amount of last period
Government Subsidy-Cancel the Special Subsidy for
10046949.2110046949.24
Provincial Toll Station Project of Expressway
Government Subsidy- Charging infrastructure incentive funds 12553.40 2788.17
Government Subsidy- Vehicle purchase tax revenue subsidies
600000.00
for local funds
Government subsidy- Stable job subsidies 25500.00 2344310.46
Government subsidy--- Technology Reward 20000.00
Maternity allowance 660829.32 691491.83
Veterans' VAT reduction and exemption 67647.73 309883.38
Withholding and remitting enterprise prepaid income tax fees 168720.03 273172.75
Veterans' VAT reduction and exemption 23955.84 39056.05
Total 11606155.53 13727651.88
41. Changes in the fair value of the earning
In RMB
Items Amount of this period Amount of last period
Other non-current financial assets 2456768.00 10400000.00
Total 2456768.00 10400000.00
42. Investment income
In RMB
Items Amount of this period Amount of last period
Long-term equity investment income by
215712728.62194108143.09
equity method
Disposition of the investment income
generated by the long-term equity 24875986.37 13564262.33
investment
Dividends earned during the holding 71249739.36 47286243.74
period on investments in other equity
2102023 Annual Report
instrument
Investment income of other non-current
601253.78
financial assets during the holding period
Interest income from the entrusted loan 25515.00
Other -80000.00 -91000.00
Total 312359708.13 254893164.16
43. Credit impairment losses
In RMB
Items Amount of this period Amount of last period
Impairment losses on account receivable 192083.34 -647916.67
Impairment losses on other receivable -123358138.31 -97749481.71
Total -123166054.97 -98397398.38
44. Asset impairment loss
In RMB
Items Amount of this period Amount of last period
Loss on impairment of fixed assets -10443015.96
Total -10443015.96 0.00
Other note：
45.Assets disposal income
In RMB
Items Amount of this period Amount of last period
Non-current assets disposal gains 478663.58
Including：Income from disposal of
478663.58
Fixed assets
Total 478663.58
46. Non-Operation income
In RMB
The amount of non-operating
Items Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 2230.09 224100.38 2230.09
profit
Insurance claim income 1571199.75 6582174.68 1571199.75
Road property claim income 2473459.99 2678040.82 2473459.99
Relocation compensation
income 22000.00 22000.00
Other 676740.36 564625.40 676740.36
Total 4745630.19 10048941.28 4745630.19
47. Non-Operation expense
In RMB
2112023 Annual Report
The amount of non-operating
Items Amount of current period Amount of previous period gains & losses
Non-current assets are
damaged and scrapped for 12138213.43 640374.72 12138213.43
profit
Road rehabilitation
8652598.7211455442.768652598.72
expenditure
Fine 575.45 2254.33 575.45
Other 605753.91 165222.71 605753.91
Total 21397141.51 12263294.52 21397141.51
48. Income tax expense
(1) Lists of income tax expense
In RMB
Items Amount of current period Amount of previous period
Current income tax expense 643000314.19 453820023.55
Deferred income tax expense 71560856.65 94135730.30
Total 714561170.84 547955753.85
(2) Adjustment process of accounting profit and income tax expense
In RMB
Items Amount of current period
Total 2976901306.90
Current income tax expense accounted by tax and relevant
744225326.72
regulations
Influence of income tax before adjustment 312497.27
Influence of non taxable income -35142201.08
Impact of non-deductible costs expenses and losses 22439500.45
Impact of deductible losses from previously unidentified deferred income tax
-2521213.33
assets
The current period does not affect the deferred tax assets recognized
-14752739.19
deductible temporary differences or deductible loss
Income tax expense 714561170.84
49.Items of Cash flow statement
（1）Cash related to operating activities
Other cash received from business operation
In RMB
Items Amount of current period Amount of previous period
Interest income 82916438.52 44010814.62
Unit current account 94834141.80 76546511.83
Qijiang new city south interchange
385000000.00
construction subsidy funds
Total 562750580.32 120557326.45
Other cash paid related to operating activities
In RMB
2122023 Annual Report
Items Amount of current period Amount of previous period
Management expense 34024091.22 28648089.97
Unit current account 63945236.37 98694135.34
Total 97969327.59 127342225.31
（2）Cash related to Investment activities
Cash receivable related to other Investment activities
In RMB
Items Amount of current period Amount of previous period
Disposition of cash received by associated 80429567.10
Net cash received from the disposal of subsidiaries 28514496.27
Cash received from dividends and dividends of
71850993.1447286243.74
other equity investments
Cash received from dividends of associated 68717811.14 121413757.76
Total 220998371.38 197214497.77
Cash Payable related to other Investment activities
In RMB
Items Amount of current period Amount of previous period
Equity transaction service fee 182544.13
Total 182544.13 0.00
Pay for important cash related to investment activities
In RMB
Items Amount of current period Amount of previous period
Cash paid for other equity investments 56080000.00 91091000.00
Cash paid for by investing in associates 110250000.00 230250000.00
Cash paid for the reconstruction and expansion of
the Nansha-Zhuhai section of the Guangzhou- 1373291244.83 526170388.65
Macao Expressway
Total 1539621244.83 847511388.65
(3)Cash related to Financing activities
Other cash received in relation to financing activities
In RMB
Items Amount of current period Amount of previous period
Government infrastructure investment
57350200.00
subsidies
Internal fund lending of the group 500000000.00
Total 0.00 557350200.00
Cash paid related to other Financing activities
In RMB
Items Amount of current period Amount of previous period
Issuance fee of medium-term notes 1001869.75 1001869.75
Cash paid for the lease liabilities 13092412.09 13278583.90
Total 14094281.84 14280453.65
2132023 Annual Report
Changes in various liabilities arising from financing activities
□Applicable □Not applicable
In RMB
Items Year-beginning balance Increase in the current period Decrease in the current period Year-end balance
Cash changes Non-cash changes Cash changes Non-cash changes
Other payable-Dividend
59994517.461430140196.481462325203.6227809510.32
payable
Other payable- Sporadic
1294329.09957.342114.881291256.87
dividends
Short-loans 430387597.20 110000000.00 3425347.22 433727236.09 110085708.33
Non-current liabilities
117011466.96883412159.65117011466.96883412159.65
arising due within 1 year
Other current liabilities-
500122916.6714123611.10514246527.77
fund lending
Long-term loans 5566595350.00 565525000.00 197324462.85 232899982.98 151828779.87 5944716050.00
Bonds payable 1428381232.94 50647250.71 9020000.01 720607149.69 749401333.95
Long-term payable 2517493.12 495283.01 2022210.11
Lease liabilities 150984.47 32058510.58 8246345.00 10480947.08 13482202.97
Total 8106455887.91 675525000.00 2611131538.59 2777477719.77 883414274.53 7732220432.20
2142023 Annual Report
50. Supplement Information for cash flow statement
（1）Supplement Information for cash flow statement
In RMB
Supplement Information Amount of current Amount of previous
period period
I. Adjusting net profit to cash flow from operating activities
Net profit 2262340136.06 1793860223.34
Add：Credit loss preparation 123166054.97 98397398.38
Impairment loss provision of assets 10443015.96
Depreciation of fixed assets oil and gas assets and consumable biological assets 1121749435.32 1018003178.73
Depreciation of Use right assets 10417949.40 9771123.65
Amortization of intangible assets 26628234.56 24232065.30
Amortization of Long-term deferred expenses 350625.00 350625.00
Loss on disposal of fixed assets intangible assets and other long-term deferred assets -478663.58
Fixed assets scrap loss 12135983.34 416274.34
Loss on fair value changes -2456768.00 -10400000.00
Financial cost 215055241.95 237456103.95
Loss on investment -312359708.13 -254893164.16
Decrease of deferred income tax assets 89208863.35 100158897.11
Increased of deferred income tax liabilities -17648006.70 -6023166.81
Decrease of inventories
Decease of operating receivables -161409427.85 -102793804.75
Increased of operating Payable 452543414.34 -156030532.12
Other 1620519.90
Net cash flows arising from operating activities 3831785563.47 2752026558.38
II. Significant investment and financing activities that without cash flows:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Financing of fixed assets leased
3．Movement of cash and cash equivalents：
Ending balance of cash 4701657434.00 4284688231.33
Less: Beginning balance of cash equivalents 4284688231.33 2955183190.55
Add：End balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalent 416969202.67 1329505040.78
2152023 Annual Report
（2）Composition of cash and cash equivalents
In RMB
Items Balance in year-end Balance in year-Beginning
4701657434.004284688231.33
Cash
35130.1543420.71
Of which: Cash in stock
Bank savings could be used at any time 4701108299.37 4284128907.61
Other monetary capital could be used at any
514004.48515903.01
time
Balance of cash and cash equivalents at the
4701657434.004284688231.33
period end
（3） Monetary funds that are not cash and cash equivalents
In RMB
Items Current amount Previous amount Reasons other than cash and cash equivalents
Land reclamation funds in fund custody
Land reclamation funds 1221200.00 1221200.00
account
Unexpired accrued
15753098.20 4672059.45 Not actually received
interest
Total 16974298.20 5893259.45
51. Lease
(1) The Company as lessee
□Applicable □Not applicable
Variable lease payments not included in the measurement of lease liabilities
□Applicable□Not applicable
Short-term lease or lease cost of low-value assets with simplified treatment
Leasing expenses generated from short-term leases or low value assets simplified by the
company in 2023 amounted to 1370162.05 yuan
□Applicable□Not applicable
Involving after-sale leaseback transactions
In RMB
Items Current amount
Interest expense of lease liabilities 750606.77
Variable lease payments not included in the measurement of lease liabilities
Short-term lease or lease cost of low-value assets with simplified treatment 1370162.05
Income from subletting right-to-use assets
Total cash outflow related to leasing 14142466.09
(2) The Company as lessor
Operating lease as lessor
2162023 Annual Report
□Applicable □Not applicable
In RMB
In which: income related to variable
Items Lease income lease payment not included in lease
receipts
Operating lease income 32310227.17
Total 32310227.17
Financial lease as lessor
□Applicable□Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable□Not applicable
VIII. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
In RMB
Shareholding Ratio
Main
Registered Registratio Nature of (%) Obtaining
Name of Subsidiary
capital Places of n Place Business indirec Method
Operation direct
t
Under the
Expressway same
Guangfo Expressway Co. Guangzho
200000000.00 Guangzhou Managemen 75.00%
Ltd. controlu
t business
combination
Under the
Expressway same
Guanghui Expressway Co. 2351678000.0 Guangzho Guangzhou Managemen 51.00%
Ltd. 0 controlu
t business
combination
Under the
Jingzhu Expressway Expressway same
Guangzhu Section 2855700000.0 Zhongshan Guangzhou Managemen 75.00%
0 control
Co.Ltd. t business
combination
Yuegao Capital Guangzho Investment 100.00 Establishmen
Investment(Guangzhou)Co. 375500000.00 Guangzhou
Ltd. u management
% t
Notes: holding proportion in subsidiary different from voting proportion: None
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
voting rights not been controlled investee: None
Significant structure entities and controlling basis in the scope of combination: None
Basis of determine whether the Company is the agent or the principal: None
(2) Important Non-wholly-owned Subsidiary
2172023 Annual Report
In RMB
Profit or Loss Dividends
Equity Balance of the
Shareholding Ratio Owned by the Distributed to the
Minority Shareholders
Name of Subsidiary of Minority Minority Minority
in the End of the
Shareholders (%) Shareholders in the Shareholders in the
Period
Current Period Current Period
Guangfo Expressway Co. Ltd. 25.00% -30013034.17 34338705.82
Guangdong Guanghui Expressway
49.00%528127604.30446805174.082056190891.85
Co. Ltd.Jingzhu Expressway Guangzhu
25.00%130414532.2588470000.47470744350.02
Section Co.Ltd.Holding proportion of minority shareholder in subsidiary different from voting proportion
None
2182023 Annual Report
(3) The main financial information of significant not wholly owned subsidiary
In RMB
Year-end balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 148592352.43 14240888.13 162833240.56 25478417.30 25478417.30
Guangdong Guanghui
2039529187.552500576138.594540105326.14211040982.63132756400.96343797383.59
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
388634507.853710550073.864099184581.711229752786.81986454394.822216207181.63
Section Co.Ltd.In RMB
Year-beginning balance
Name
Current assets Non- current assets Total assets Current Liabilities Non- current liabilities Total liabilities
Guangfo Expressway Co. Ltd. 270445990.72 15689069.15 286135059.87 28728099.92 28728099.92
Guangdong Guanghui
1463091700.932980427023.344443518724.27242093924.47171081000.56413174925.03
Expressway Co. Ltd.Jingzhu Expressway Guangzhu
1097313535.802536899303.013634212838.812477933314.32141080251.542619013565.86
Section Co.Ltd.In RMB
Amount of current period Amount of previous period
Name Total Cash flows from Total Cash flows from
Business income Net profit Comprehensive operating Business income Net profit Comprehensive operating
income activities income activities
Guangfo Expressway Co.
2596257.76-120052136.69-120052136.691386616.3768796094.51-55402628.32-55402628.32203596819.21
Ltd.Guangdong Guanghui
2151996795.831077811437.351077811437.351574951846.341852612486.85902052548.93902052548.931213241301.99
Expressway Co. Ltd.Jingzhu Expressway
1191507531.28521658129.01521658129.011127045720.91935890869.56357455233.82357455233.82574838142.22
Guangzhu Section Co.Ltd.Other note：None
2192023 Annual Report
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
None
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
None
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Significant joint venture arrangement or associated enterprise
None
（2）Affect of the transaction on the minority equity and owner's equity attributable to the parent company
None
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Proportion Accounting
Main treatment of the
Registrati
Name operating Business nature Directl Indirectl investment of
on place joint venture or
place y y associated
enterprise
Zhaoqing
Zhaoqing Yuezhao Highway Co. Zhaoqing Expressway
Ltd. Guangdon
25.00% Equity method
Management
Guangdong
g
Shenzhen Huiyan Expressway Co. Expressway
Shenzhen Shenzhen 33.33% Equity method
Ltd. Management
Guangdong Jiangzhong Expressway Zhongsha Expressway
Zhongshan 15.00% Equity method
Co. Ltd. n Management
Ganzhou kangda Expressway Co. Expressway
Gangzhou Ganzhou 30.00% Equity method
Ltd. Management
Ganzhou Gankang Expressway Co. Expressway
Gangzhou Ganzhou 30.00% Equity method
Ltd. Management
Guangdong Yueke Science and Guangzho Hand all kinds
Guangzhou 15.48% Equity method
Technology Microfinance Co. Ltd. u of small loans
Security
Guangyuan Securities Co. Ltd. Hefei Hefei 2.37% Equity method
business
Research and
Hunan Lianzhi Technology Co. Ltd. Changsha Changsha experimental 12.53% Equity method
development
SPIC Yuetong Qiyuan Chip Power Guangzho New Energy
Guangzhou 7.14% Equity method
Technology Co. Ltd u service
Note to holding proportion of joint venture or associated enterprise different from voting proportion:
None
Basis of holding less than 20% of the voting rights but has a significant impact or holding 20% or more voting
rights but does not have a significant impact:
The company holds less than 20% of the voting rights in Guangdong Jiangzhong Expressway Co. Ltd.Guoyuan Securities Co. Ltd. Guangdong Yuepu Small Loan Co. Ltd. Hunan Lianzhi Technology Co. Ltd.
2202023 Annual Report
and Guodian Investment Yuetong Qiyuan Xin Power Technology Co. Ltd. However it has the right to
participate in financial and operational decision-making and can exert significant influence on the invested unit
.(2) Main financial information of significant joint venture
None
(3) Main financial information of significant associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Guoyuan Securities Co. Ltd. Guoyuan Securities Co. Ltd.Current assets
Non-current assets
Total assets 133200177000.85 130765208142.95
Current liabilities
Non-current Liabilities
Total liabilities
Minority Shareholders’ Equity
Shareholders’ equity attributable to
34578952207.0232927214909.60
shareholders of the parent
Pro rata share of the net assets calculated 820004900.93 780835620.42
Adjustment items
--Goodwill 207095632.54 207095632.54
-- Internal transactions did not achieve
profits
--Other -63625.54
The book value of equity investments in j
1027100533.47987867627.42
oint ventures
Fair value of equity investment of
associated enterprises with open 706786035.06 655044744.06
quotation
Buinsess incme 6375088522.72 5357837845.51
Net profit 1868664593.05 1719972806.89
Net profit from terminated operations
Other comprehensive income 426564437.75 -303384670.30
Total comprehensive income 2295229030.80 1416588136.59
Dividends received from associates durin
15522387.3018626864.76
g the year
(4) Summary financial information of insignificant joint venture or associated enterprise
In RMB
Year-end balance/ Amount of current Year-beginning balance/ Amount of
period previous period
Joint venture：
2212023 Annual Report
Total amount of the pro rata calculation
of the following items
Associated enterprise：
Total book value of the investment 2068477754.53 1935437414.88
Total amount of the pro rata calculation
of the following--Net profit ms
--Net profit 171074736.63 152508655.82
--Total comprehensive income 171074736.63 152508655.82
Other note：None
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds to the
Company
None
(6) The excess loss of joint venture or associated enterprise
None
(7) The unrecognized commitment related to joint venture investment
None
(8) Contingent liabilities related to joint venture or associated enterprise investment
None
4. Significant common operation
None
5. Equity of structure entity not including in the scope of consolidated financial statements
None
6.Other note
None
IX. Government subsidies
1. At the end of the reporting period government subsidies recognized according to the amount
receivable
□Applicable□Not applicable
Closing balance of accounts receivable: RMB.Reasons for not receiving the estimated amount of government subsidies at the expected time
□Applicable□Not applicable
2. Liabilities involving government subsidies
□Applicable □Not applicable
In RMB
Amount Amount Other
New subsidy included in transferred to changesAccounting Beginning Closing Related to
amount in the non- other income in in thesubject balance balance assets/income
current period operating the current current
income in period period
2222023 Annual Report
the current
period
Deferred
21009212.70 385026614.00 10059502.61 395976324.09 Asset-related
income
3. Government subsidies included in current profits and losses
□Applicable □Not applicable
In RMB
Accounting subject Amount incurred in the current period Amount incurred in the previous period
Other income 10685002.61 12414047.87
X. Risks Related to Financial Instruments
1. Risks Related to Financial Instruments
The company has the main financial instruments such as bank deposits receivables and payables investments
loans and so on. Please refer to the relevant disclosure in Notes for the details. The risks associated with these
financial instruments mainly include credit risk market risk and liquidity risk. The company’s management
shall manage and monitor these risks and ensure above risks to be controlled within certain scope.The targets and policies of risk management
The target of risk management is to obtain the proper balance between the risk and benefit to reduce the
negative impact that is caused by the risk of the Company to the lowest level and to maximize the benefits of
shareholders and other equity investors. Based on the targets of risk management the basic strategy of the
Company’s risk management is to identify and analyze the risks which are faced by the Company establish
suitable risk tolerance baseline and proceed the risk management and supervise a variety of risks timely and
reliably and control the risks within a limited range.
1.Market risk
（1）Foreign exchange risk
Foreign exchange risk refers to the risk of loss due to exchange rate fluctuations generally. Our foreign
exchange risk is mainly related to Hong Kong Dollar. Besides annual distribution of B-share shareholder
dividends other major business activities of our Company are settled in RMB. During the reporting period due to
the short credit period of the Company's income and expenditure related to foreign currency it was not affected
by foreign exchange risk.
（2）Interest rate risk- Risk of cash flow changes
The Company's risk of cash flow changes in financial instruments caused by interest rate changes is mainly
related to floating rate bank borrowings. The Company's policy is to maintain the floating interest rate of these
borrowings and at the same time to reasonably reduce the risk of interest rate fluctuation by shortening the term
of a single loan and specifically agreeing on prepayment terms.
（3）Other price risk
The investments held by the Company are classified as financial assets measured at fair value and whose
changes are included in other comprehensive income and are measured at fair value on the balance sheet date.Therefore the Company bears the risk of changes in the securities market.
2.Credit risk
2232023 Annual Report
As of December 312023 the largest credit risk exposure that may cause financial losses of the Company
mainly comes from the loss of financial assets of the Company caused by the failure of the other party to perform
its obligations.In order to reduce credit risk the Company only deals with recognized and reputable customers. In addition
the Company reviews the recovery of each single receivables on each balance sheet date to ensure that adequate
bad debt provisions are made for unrecoverable amounts. Consequently the Company's management believes that
the Company's credit risk has been greatly reduced.The Group's working capital is deposited in banks with higher credit rating so the credit risk of working
capital is relatively low.Financial assets overdue or impaired;
(1) Aging analysis of financial assets with overdue impairment: Not existed
(2) Analysis of financial assets that have suffered single impairment: Refer to "4 Other Receivables" in VII
and "7 Investment in Other Equity Instruments" in VII(6) of this section for details.
3.Liquidity risk
When managing liquidity risks the Company maintains sufficient cash and cash equivalents as deemed by
the management and monitor them to meet the Company's operational needs and reduce the impact of cash flow
fluctuations. The management of the Company monitors the use of bank loans and ensures compliance with the
loan agreement.XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
In RMB
Closing fair value
Items Fir value Fir value Fir value measurement
measurement items at measurement items Total
items at level 3
level 1 at level 2
I. Consistent fair value
--------
measurement
(I) Trading financial assets 183856768.00 183856768.00
1. Financial assets measured at fair
value and whose changes are included 183856768.00 183856768.00
in the current profit and loss
（2）Equity instrument investment 183856768.00 183856768.00（II）Other equity instrument 682239337.60 852157550.03 1534396887.63
investment
Total assets continuously measured at
682239337.601036014318.031718253655.63
fair value
II. Non –persistent measure -- -- -- --
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1.
As at the end of the period the company holds shares 235254944 shares of China Everbright Bank
According to the closing price of December 312023 of 2.90 yuan the final calculation of fair value was
682239337.60 yuan.
2242023 Annual Report
3. Fair value of financial assets and liabilities not measured at fair value The valuation techniques
adopted and the qualitative and quantitative information of important parameters for continuous and
non-continuous level 3 fair value measurement items
Items Fair value as of Valuation technology Unobservable input
December 312023 value
Unlisted equity Hire a third party for evaluation or enjoy the share of the net Net book assets of the
1036014318.03
investment book assets of the investee based on the shareholding ratio invested unit
4. Fair value of financial assets and liabilities not measured at fair value
The Company's financial assets and liabilities measured in amortized cost mainly include: accounts
receivable other receivables contract assets short-term loans accounts payable other payables non-current
liabilities due within one year long-term loans bonds payable and long-term payables.There is no significant difference between the book value of financial assets and liabilities not measured at
fair value and the fair value.XII. Related parties and related-party transactions
1. Parent company information of the enterprise
The parent
The parent company
Registered Redistricted company of the
Name Nature of the Company's
address capital Company’s voteshareholding ratio
ratio
Equity management traffic
Guangdong
infrastructure construction 26.8 billion
communication Guangzhou 24.56% 50.12%
and railway project yuan
Group Co. Ltd
operation
Note ：
Guangdong Communication Group Co. Ltd. is the largest shareholder of the Company. legal representative:
Deng Xiaohua. Date of establishment: June 23 2000. As of December 312023Registered capital: 26.8 billion
yuan. It is a solely state-owned limited company. Business scope：equity management organization of asset
reorganization and optimized allocation raising funds by means including mortgage transfer of property rights
and joint stock system transformation project investment operation and management traffic infrastructure
construction highway and railway project operation and relevant industries technological development
application consultation and services highway and railway passenger and cargo transport ship industry
relevant overseas businesses; The value-added communication business.The finial control of the Company was State owned assets supervision and Administration Commission of
Guangdong Provincial People's Government.Other note：
2.Subsidiaries of the Company
Subsidiaries of this enterprise see VIII(1) the rights of other entity
3. Information on the joint ventures and associated enterprises of the Company
Details refer to the VIII-3 Interests in joint ventures or associates
2252023 Annual Report
Information on other joint venture and associated enterprise of occurring related party transactions with the
Company in reporting period or form balance due to related party transactions in previous period:
Name Relation with the Company
Shenzhen Huiyan Expressway Co. Ltd. Associated enterprises of the Company
Zhaoqing Yuezhao Highway Co. Ltd. Associated enterprises of the Company
Ganzhou Kangda Expressway Co. Ltd. Associated enterprises of the Company
Ganzhou Gankang Expressway Co. Ltd. Associated enterprises of the Company
Guangdong Jiangzhong Expressway Co. Ltd. Associated enterprises of the Company
4. Other Related parties
Name Relation with the Company
Guangdong East Thinking Management Technology
Fully owned subsidiary of the parent company
Development Co. Ltd.Guangdong Expressway Media Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Expressway Technology Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Humen Bridge Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Hualu Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communications Testing Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Development Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Technology Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Litong Property Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Union Electron Service Information technology
Fully owned subsidiary of the parent company
Co. ltd.Guangdong Lulutong Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Luoyang Expressway Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Provincial Freeway Co.Ltd. Fully owned subsidiary of the parent company
Guangdong Highway Construction Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Communication Group Finance Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Tongyi Expressway Service Area Co. Ltd Fully owned subsidiary of the parent company
Guangdong Xinyue Traffic Investment Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Rescue Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Traffic Technology Co. Ltd. Fully owned subsidiary of the parent company
Guangzhou Xinyue Asphalt Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Traffic Development Co. Ltd. Fully owned subsidiary of the parent company
Guangdong Yueyun Traffic Co. Ltd. Fully owned subsidiary of the parent company
Poly Changda Engineering Co. Ltd. Shares of parent company
Guangdong Communication Planning & Design Institute Co.Shares of parent company
Ltd.Guangdong Changda Road Conservation Co. Ltd. Shares of parent company
Guangzhou Aitesi Communication equipment Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Jingzhu Expressway Guangzhu North Section Co. Associated enterprises controlled by the same parent company
2262023 Annual Report
Name Relation with the Company
Ltd.Guangdong Feida Traffic Engineering Co. Ltd. Associated enterprises controlled by the same parent company
Guangdong Road Network Digital Media Information
Fully owned subsidiary of the parent company
Technology Co. Ltd
Hunan Lianzhi Technology Co. Ltd. A wholly owned subsidiary of the Company
Guangzhongjiang Expressway Project Management Dept Managed by the parent company
5. List of related-party transactions
(1)Information on acquisition of goods and reception of labor service
Acquisition of goods and reception of labor service
In RMB
Amount of Amount of Over the
Content of related trading Amount of last
Related parties
transaction current period previous limit or period
not
period
1.Business cost
Poly Changda Engineering Co. Ltd. Project fund service 25010914.00 39604731.00
Guangdong Union electronic
Service 16890482.70 23704775.99
services co. Ltd.Guangdong Xinyue Traffic
Project fund service 9330032.04 5487176.00
Investment Co. Ltd.Guangdong Communications
Project fund service 8502733.00 10551045.00
Testing Co. Ltd.Guangdong Feida Traffic
Maintenance 6368019.00 6372528.95
Engineering Co. Ltd.Guangdong Hualu Traffic
Project 5126252.67 2557895.23
Technology Co. Ltd.Guangzhou Xinyue Asphalt Co.Purchase 3265078.03 3135448.69
Ltd.Guangdong Yueyun Traffic Rescue
Rescue service fee 3607400.00 3473440.00
Co. Ltd.Guangdong Lulutong Co. Ltd. Project fund service 2286315.00 7836175.59
Guangdong Communication
Planning & Design Institute Co. Project labour service 1860809.74 463795.00
Ltd.Guangdong East Thinking
Management Technology Maintenance，Service 1437278.17 1458780.20Development Co. Ltd.Guangdong Litong Technology
Maintenance 1331428.00 1700262.90
Investment Co. Ltd.Guangdong Humen Bridge Co. Ltd. Service 1141771.80 3524001.08
Guangdong Expressway Technology
Maintenance Test 1110878.00 3539282.52
Investment Co. Ltd.
2272023 Annual Report
Amount of Amount of Over the
Content of related trading Amount of last
Related parties
transaction current period previous limit or period
not
period
Hunan Lianzhi Monitoring Project 296763.00
Technology Co. Ltd.Guangdong Expressway Media Co. Project 136000.00
Ltd.Guangdong Tongyi Expressway
Service 131379.00 102152.00
Service Area Co. Ltd
Guangdong Communication
Service 64032.00
Technology Development Co. Ltd.Guangzhou Aitesi Communication Maintenance of
8310.00
Equipment Co. Ltd. charging facilities
Guangdong Changchang Road Project -77232.00
Maintenance Co. Ltd.Subtotal 87897566.15 113442568.15
2.Financial cost
Guangdong Communication Group Borrowing Interest
10157805.5514854227.76
Finance Co. Ltd. expresses
Guangdong Communication Group
Deposit interest income -73213480.41 -25570660.76
Finance Co. Ltd.Guangdong Communication Group
Commission charge 4612.02 6881.51
Finance Co. Ltd.Guangdong Communication Group
Interest 14123611.10 122916.67
Co. Ltd.Subtotal -48927451.74 -10586634.82
3.Administrative expenses
Guangdong Union electronic
maintenance fee 798700.00 993500.00
services co. Ltd.Guangdong East Thinking
Management Technology Maintenance，Service 510000.00 474905.66Development Co. Ltd.Guangdong Xinyue Traffic Monitoring service fee
214882.00
Investment Co. Ltd. and installation fee
Guangdong Litong Development
Management Fee 259619.11 3058559.09
Investment Co. Ltd.Guangdong Litong Development Management Fee water
29004.7761187.98
Investment Co. Ltd. and electricity
Guangdong Tongyi Expressway
Service 16000.00 16000.00
Service Area Co. Ltd
Guangdong Lulutong Co. Ltd. Maintenance 67300.00
Subtotal 1828205.88 4671452.73
4.R & D
Guangdong Communication
Scientific research
Planning & Design Institute Co. 963646.00
project
Ltd.Guangdong Communications Scientific research
527165.003899843.00
Testing Co. Ltd. project
Guangdong Hualu Traffic Scientific research 481823.00 199969.00
2282023 Annual Report
Amount of Amount of Over the
Content of related trading Amount of last
Related parties
transaction current period previous limit or period
not
period
Technology Co. Ltd. project
Hunan Lianzhi Monitoring Scientific research
659885.00
Technology Co. Ltd. project
Subtotal 1972634.00 4759697.00
5.Fixed assets
Poly Changda Engineering Co. Ltd. Purchase assets 2833368.00 21636899.00
Guangdong Xinyue Traffic
Purchase assets 2783766.00
Investment Co. Ltd.Guangdong Feida Traffic Purchase assets 2611574.00 302909.00
Engineering Co. Ltd.Guangdong Communication
Planning & Design Institute Co. Purchase assets 2432390.24 1333458.66
Ltd.Guangdong Hualu Traffic
Purchase assets 2128295.94 3272616.23
Technology Co. Ltd.Guangdong Communications Purchase assets 1435396.00 183430.00
Testing Co. Ltd.Guangdong East Thinking
Management Technology Purchase assets 434800.00
Development Co. Ltd.Guangdong Lulutong Co. Ltd. Purchase assets 1734994.86 6305408.00
Guangdong Litong Technology Purchase assets 227490.00 1083407.99
Investment Co. Ltd.Subtotal 16622075.04 34118128.88
6. Construction in process
Poly Changda Engineering Co. Ltd. Purchase assets 124024328.00 13850389.47
Guangdong Communication
Planning & Design Institute Co. Purchase assets 26337631.00 21386526.00
Ltd.Guangdong Feida Traffic Purchase assets 18510159.00
Engineering Co. Ltd.Guangdong Communications Purchase assets 2028475.00 68052.00
Testing Co. Ltd.Guangdong Hualu Traffic
Purchase assets 1668179.00 1045494.00
Technology Co. Ltd.Guangdong Highway Construction Purchase assets 480000.00 2029339.19
Co. Ltd.Guangdong Communication Group Capitalized interest 45833.33
Finance Co. Ltd.Guangdong Xinyue Traffic
Purchase assets 29103.00 1116576.78
Investment Co. Ltd.Subtotal 173123708.33 39496377.44
7.Non-operating expenses
Guangdong Feida Traffic Expenditure on
487087.00
Engineering Co. Ltd. electromechanical
2292023 Annual Report
Amount of Amount of Over the
Content of related trading Amount of last
Related parties
transaction current period previous limit or period
not
period
system repair
Guangdong Xinyue Traffic
Sporadic repair fees 83018.00 294810.00
Investment Co. Ltd.Expenses for civil
Poly Changda Engineering Co. Ltd. 1.00 3883375.00
engineering restoration
Guangdong Lulutong Co. Ltd. Maintenance 98491.00
Subtotal 570106.00 4276676.00
Related transactions on sale goods and receiving services
In RMB
Related party Content Amount of current period Amount of previous
period
1.Business income
Jingzhu Expressway Guangzhu North
Commission management fee 24620471.71 23773018.85
section Co. Ltd.Guangdong Traffic Development Co.electricity 1254801.91 945395.40
Ltd.Guangdong Tongyi Expressway
electricity 1192276.53 1187798.23
Service Area Co. Ltd
Ganzhou Gankang Expressway Co.Salaries of expatriate staff 938851.79 848557.89
Ltd.Zhaoqing Yuezhao Highway Co. Ltd. Salaries of expatriate staff 888933.32 817436.38
Shenzhen Huiyan Expressway Co.Salaries of expatriate staff 880596.24 767691.55
Ltd.Guangdong Jiangzhong Expressway
Salaries of expatriate staff 494509.32 500214.96
Co. Ltd.Ganzhou Kangda Expressway Co. Ltd. Salaries of expatriate staff 467198.40 515567.27
Poly Changda Engineering Co. Ltd. water and electricity bills 60413.75 167505.31
Guangdong Yueyun Traffic Rescue
Water and electricity 19879.27 17915.70
Co. Ltd.Guangdong Expressway Media Co.Water and electricity 9274.73 24258.08
Ltd.Guangdong Litong Technology Electricity 8948.76 27125.58
Investment Co. Ltd.Guangdong Expressway Technology
Salaries of expatriate staff 114620.52
Investment Co. Ltd.Subtotal 30836155.73 29707105.72
2.Non-operating income
Guangdong Xinyue Traffic Investment Construction liquidated
24462.00
Co. Ltd. damages
Guangdong Feida Traffic Engineering Construction liquidated
2000.00
Co. Ltd damages
Poly Changda Engineering Co. Ltd. Construction liquidated 1200.00 10200.00
2302023 Annual Report
Related party Content Amount of current period Amount of previous
period
damages
Subtotal 27662.00 10200.00
(2) Information of related lease
The Company was lessor：
In RMB
Category of lease The lease income confirmed The lease income confirmed
Name of lessee
assets in this year in last year
Guangdong Expressway Technology Co. Advertising lease
2750824.413876219.92
Ltd.Guangdong Expressway Technology Co.Property lease 339864.33 171815.93
Ltd.Guangdong Expressway Technology Co. Communication
5232174.45
Ltd. pipeline lease
Advertising lease
Guangdong Expressway Media Co. Ltd. 2430365.96 2809700.73
Guangdong Tongyi Expressway Service Service Area
924116.722297830.86
Area Co. Ltd Lease
Guangdong Litong Technology Investment Communication
2095121.231029782.83
Co. Ltd. Piping
Guangdong Litong Technology Investment
Land lease 31809.52 16761.90
Co. Ltd.Poly Changda Engineering Co. Ltd. Land lease 555557.14 555557.14
Poly Changda Engineering Co. Ltd. Equipment lease 445910.48 445910.62
Total 14805744.24 11203579.93
2312023 Annual Report
- The company was lessee：
In RMB
Variable lease payments
Rental charges for short-
not included in lease Interest expenses on lease
term and low-value assets Rent paid Increased use right assets
liabilities measurement liabilities assumed
(if any)
(if any)
Category of
Lessor Amount of Amount of Amount Amount of Amount of Amount of Amount of Amount of Amount of Amount
leased assets
current previous of current previous current period previous current previous current period of
period period period period period period period previous
period
Guangdong
Litong
Office space
Decelopment 10255100.13 12211529.46 719705.56 349331.19 30634734.72
Investment Co.Ltd
Guangdong
Litong Real
Office space
Eatate 24124.00 95596.46 79712.00 4697.99 230671.46
Investment Co.Ltd
Jingzhu
Expressway Office space
79378.0010701.43
Guangzhu North
section Co. Ltd.Guangdong
Motor Car rental fee
570000.00413153.90
Transportation
Group Co. Ltd
Total 594124.00 508750.36 10414190.13 12211529.46 735104.98 349331.19 30865406.18
2322023 Annual Report
(3 ）Rewards for the key management personnel
In RMB10000
Items
Amount of current period Amount of previous period
Rewards for the key management
718.92703.39
personnel
（4） Transactions with associated financial companies
（1）Deposit business
Related party Relationsh Maximum daily Depos Beginning The amount of this period
ip deposit it balance(RMB'0000
Total amount for Total amount is Endinglimit(RMB'0000 interes 0）
this withdrawn for this balance(RMB'0000
0） t rateperiod(RMB'0000 period(RMB'0000 0）
range
0）0）
Guangdong Controlled
Communicati by the 0.35%
ons Group same 300000.00 - 239396.61 813666.48 785248.27 267814.82
Finance Co. parent 2.85%
Ltd company
（2）Loan business
Related party Relationsh Beginning The amount of this period
ip Loant balance(RMB'0000Loan Total loan amount Total repayment0） Endingintere
limit(RMB'0000 of the current amount of the balance(RMB'0000
st rate
0） period(RMB'0000 current 0）range 0） period(RMB'0000
0）
Guangdong Controlled
2.95
Communicati by the
%-
ons Group same 300000.00 62859.33 22020.36 44246.77 40632.92
3.40
Finance Co. parent
%
Ltd company
（3）Credit extension or other financial services
Related party Relationship Business Total Actual amounttype amount(RMB'00000） incurred(RMB'00000）
Controlled by the Credit
Guangdong Communications Group Finance Co. Ltd same parent extension 400000.00 400000.00
company
The Company respectively signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 25 2017; and signed the "Cash Management Business Cooperation Agreement" with
Guangdong Communications Group Finance Co. Ltd and the Guangdong Branch of Industrial and Commercial
Bank of China on December 22 2017 respectively joined the cash pool of Guangdong Communications Group
Finance Co. Ltd.Guangdong Guanghui Expressway Co. Ltd respectively signed the "Cash Management Business
2332023 Annual Report
Cooperation Agreement" with Guangdong Communications Group Finance Co. Ltd and Agricultural Bank of
China Co. Ltd Guangdong Branch on May 19 2020 joined the cash pool of Guangdong Communications Group
Finance Co. Ltd.
（5）Asset transfer and debt restructuring of related parties
None
(6) Other related-party transactions
* -On June 15 2016The company’s 29th meeting (Provisional) of the seventh board of
directors was convened. The Proposal on Entrustment of Construction Management of the
Renovation and Expansion Project of Sanbao-to-Shuikou Section of Shengyang-to-Haikou
National Expressway was deliberated in the meeting agreed that Guangdong Provincial Fokai
Expressway Co. Ltd entrusts Guangdong Provincial Highway Construction Co. Ltd with the
construction management of the renovation and expansion project of Sanbao-to-Shuikou Section
of Shengyang-to-Haikou National Expressway and handling the related matters of the
entrustment of the construction management. The above transactions have been approved and
implemented by the board of directors of Guangdong Fokai Expressway Co. Ltd.* On November 30 2022 the fifth (interim) meeting of the 10th Board of Directors of the Company
reviewed and approved the Proposal on Entrusted Construction Management of the Reconstruction and
Expansion Project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway and agreed that the subsidiary
Guangzhou-Zhuhai Section of Beijing-Zhuhai Expressway Co. Ltd. entrusted Guangdong Provincial Highway
Construction Co. Ltd. to carry out the whole-process construction management of the reconstruction and
expansion project of Nansha-Zhuhai Section of Guangzhou-Macao Expressway. The above transactions have
been approved and implemented by the Board of Directors of Guangzhu Section of Beijing-Zhuhai Expressway
Co. Ltd The above transactions have been approved and implemented by the board of directors of Beijing-
Zhuhai Expressway Guangzhou-Zhuhai Section Co. Ltd.
6. Receivables and payables of related parties
（1）Receivables
In RMB
Amount at year end Amount at year beginning
Name Related party Bad debt Bad debt
Balance of Book Balance of Book
Provision Provision
Account Guangdong Union electron Service
Co. Ltd. 104739306.92 67197924.19receivable
Account
Guangdong Humen Bridge Co. Ltd. 8382454.42 6072995.36
receivable
Account Jingzhu Expressway Guangzhu North
8643475.028321625.03
receivable Section Co. Ltd.Account Guangdong Expressway Technology
6548536.492315719.18
receivable Investment Co. Ltd.Account Guangdong Expressway Media Co.
538491.00522805.00
receivable Ltd.
2342023 Annual Report
Account
Poly Changda Engineering Co. Ltd. 503879.00 265054.16
receivable
Account Guangdong Litong Technology
475529.20
receivable Investment Co. Ltd.Total 129831672.05 84696122.92
Guangdong Feida Traffic Engineering
Prepayment 2478186.00
Co. Ltd.Total 2478186.00
Other Account Guangdong Provincial Freeway
40092886.12463491.88
receivable Co.Ltd.Other Account Guangdong Litong Development
1846377.941653447.36
receivable Investment Co. Ltd.Other Account Guangdong Expressway Media Co.
656495.57978997.66
receivable Ltd.Other Account Guangdong Union electron Service
136509.59137851.04
receivable Co. Ltd.Other Account Guangdong Humen Bridge Co. Ltd.
15000.00
receivable
Other Account Guangdong Litong Property
12062.0018344.00
receivable Development Co. Ltd.Other Account Guangdong Expressway Technology
1520.0865605.71
receivable Investment Co. Ltd.Total 42760851.30 3317737.65
Other Non- Poly Changda Engineering Co. Ltd.
120487501.70
Current Assets
Other Non- Guangdong Xinyue Traffic Investment
834973.80
Current Assets Co. Ltd.Other Non- Guangdong Traffic Development Co.
333398.00333398.00
Current Assets Ltd.Guangdong East Thinking
Other Non-
Management Technology 251000.00
Current Assets
Development Co. Ltd.Total 121906873.50 333398.00
（2）Payables
In RMB
Amount at year
Name Related party Amount at year end beginning
Short-term loan Guangdong Communication Group Finance Co. ltd. 110085708.33 430387597.20
Total 110085708.33 430387597.20
Account payable Guangdong Feida Traffic Engineering Co. Ltd. 21943925.23 3716816.94
Account payable Poly Changda Engineering Co. Ltd. 17531275.30 12590171.30
Account payable Guangdong Xinyue Traffic Investment Co. Ltd. 6044263.15 6381639.70
Account payable Guangdong Hualu Traffic Technology Co. Ltd. 3590461.17 1769785.29
Account payable Guangzhongjiang Expressway Project Management 2747739.00 17466700.00
Dept
Account payable Guangdong Communication Planning & Design 2513096.78 3008670.10
Institute Co. Ltd.
2352023 Annual Report
Amount at year
Name Related party Amount at year end beginning
Account payable Guangdong Lulutong Co. Ltd. 1682944.86 3787627.94
Account payable Guangdong East Thinking Management Technology 1588922.00 950630.00
Development Co. Ltd.Account payable Guangdong Union Electron Service Co.Ltd. 927837.89 188039.97
Account payable Guangdong Expressway Technology Investment Co. 866490.00 6935455.12
Ltd.Account payable Guangdong Yueyun Traffic Rescue Co. Ltd. 494704.00 46779.00
Account payable Guangdong Litong Technology Investment Co. Ltd. 472380.00 843562.91
Account payable Guangdong CommunicationTest Co. Ltd. 157501.00 2400079.00
Account payable Guangdong Yueyun Traffic Rescue Co. Ltd. 261800.00 261800.00
Account payable Guangdong Changda Road Maintenance Co. Ltd. 231869.00 231869.00
Account payable Hunan Lianzhi Monitoring Technology Co. Ltd 217010.00
Account payable Guangdong Motor Transportation Group Co. Ltd 184000.00
Account payable Guangdong Communications Technology Research 32016.00
and Development Co. Ltd.Account payable Guangdong Provincial Freeway Co.Ltd. 1245443.50
Account payable Hunan Lianzhi Monitoring Technology Co. Ltd 640088.00
Account payable Guangzhou Aitesi Communication Equipment Co. 25194.00
Ltd.Total 61488235.38 62490351.77
Advance received Guangdong Union Electron Service Co.Ltd. 1313348.00 1330729.13
Total 1313348.00 1330729.13
Dividend payable Guangdong Provincial Freeway Co.Ltd. 11550000.00
Total 11550000.00
Other Payable account Poly Changda Engineering Co. Ltd. 20510879.46 20866108.48
Other Payable account Guangdong Hualu Traffic Technology Co. Ltd. 2121826.06 1905833.06
Other Payable account Guangdong Road Construction Co. Ltd. 2004376.13 2000000.00
Other Payable account Guangdong Feida Traffic Engineering Co. Ltd. 1773643.35 1522615.96
Other Payable account Guangdong Expressway Technology Investment Co. 1717958.26 2298424.75
Ltd.Other Payable account Guangdong Xinyue Traffic Technology Co. Ltd. 1653523.70 1415273.20
Other Payable account Guangdong Communication Test Co. Ltd. 1573310.00 971085.90
Other Payable account Guangdong Xinyue Traffic Investment Co. Ltd. 900742.71 1332556.89
Other Payable account Guangdong Union electronic services co. Ltd. 691060.06
Other Payable account Guangdong Lulutong Co. Ltd. 607161.54 859377.06
Guangdong Communication Planning & Design
Other Payable account 462700.00 110422.00
Institute Co. Ltd.Guangdong East Thinking Management Technology
Other Payable account 394220.18 156534.54
Development Co. Ltd.Guangzhongjiang Expressway Project Management
Other Payable account 200000.00 200000.00
Dept
Guangdong Tongyi Expressway Service Area Co.Other Payable account 120000.00 120000.00
Ltd.Other Payable account Guangdong Litong Technology Investment Co. Ltd. 85919.24 92594.24
2362023 Annual Report
Amount at year
Name Related party Amount at year end beginning
Other Payable account Guangdong Expressway Media Co. Ltd. 50000.00 50000.00
Other Payable account Hunan Lianzhi Monitoring Technology Co. Ltd. 19797.00 85785.50
Other Payable account Guangdong Yueyun Traffic Rescue Co. Ltd. 2000.00 2000.00
Other Payable account Guangdong Changda Road Maintenance Co. Ltd. 1628345.00
Other Payable account Guangzhou Xinyue Asphalt Co. Ltd. 1054919.00
Total 34889117.69 36671875.58
Non-current liabilities
Guangdong Litong Development Investment Co. Ltd. 9964510.62 2445724.55
due 1 year
Non-current liabilities
Guangdong Communication Group Finance Co. ltd. 4243466.66 2205700.01
due 1 year
Non-current liabilities
Guangdong Litong Property Development Co. Ltd. 100255.11
due 1 year
Total 14308232.39 4651424.56
Other current liabilities Guangdong Communication Group Co. Ltd. 500122916.67
Total 500122916.67
Lease Liabilities Guangdong Litong Development Investment Co. Ltd. 13349882.62
Lease Liabilities Guangdong Litong Property Development Co. Ltd. 55402.33
Total 13405284.95
Long-term loans Guangdong Communication Group Finance Co. ltd. 292000000.00 196000000.00
Total 292000000.00 196000000.00
7. Related party commitment
In 2020 the Company acquired 21% equity of Guangdong Guanghui Expressway Co. Ltd. (hereinafter
referred to as "Guanghui Expressway") held by the related party Guangdong Provincial Freeway Co.Ltd.. by
cash and signed the Profit Compensation Agreement with the provincial expressway stipulating that the
performance compensation period is 2020 2021 and 2022 and during the performance compensation period
the net profit accumulated by Guanghui Expressway after deducting non-recurring gains and losses is not less
than RMB 2999265700.During the performance compensation period influenced by domestic macroeconomic fluctuations the
accumulated net profit of Guanghui Company after deducting non-recurring gains and losses during the
performance compensation period did not reach the cumulative forecast net profit which triggered the
compensation obligation stipulated in the Profit Compensation Agreement. In order to safeguard the long-term
interests of the Company and its shareholders especially the minority shareholders and take into account the
relevant arrangements made by the two parties under the original agreement according to the relevant
requirements of the Administrative Measures for Major Asset Restructuring of Listed Companies and
consultations between the two parties the Company and Provincial Expressway reached the Supplementary
Agreement to Profit Compensation Agreement on matters related to this restructuring performance
compensation which was reviewed and approved by the Company's first provisional General Meeting of
Shareholders in 2023 on August 23 2023.According to the supplementary agreement the performance compensation period of this restructuring is
adjusted to 2020 2021 and 2023 and during the performance compensation period the accumulated net profit
of Guanghui Expressway after deducting non-recurring gains and losses is not less than RMB 2999265700.
2372023 Annual Report
In 2020 2021 and 2023 Guanghui Company realized a cumulative net profit of RMB 2951041600 after
deducting non-recurring gains and losses which was RMB 48224100 less than the cumulative commitment
with a completion rate of 98.39%.At the same time the company hired Zhongrui Shilian Asset Appraisal Group Co. Ltd. (hereinafter
referred to as "Zhongrui Shilian Appraisal Company") to conduct a valuation of the 100% shareholder equity
value of Guanghui Expressway as of December 31 2023 and issued the Zhongrui Shilian Appraisal Report No.[2024] 000122 on March 11 2024 titled "Asset Appraisal Report on All Equity Value Projects of Guangdong
Guanghui Expressway Co. Ltd. Shareholders Involved in Guangdong Expressway Development Co. Ltd.'s
Equity Impairment Test" (hereinafter referred to as "Zhongrui Shilian Appraisal Report"). According to the
evaluation report of Zhongrui Shilian the market value of all equity of the target asset shareholders as of the
evaluation benchmark date of December 31 2023 is RMB 9036.2858 million. On this basis the company
conducted an impairment test on the assessed value of the target asset at the end of the period after deducting
the transaction valuation benchmark date until the end of the performance commitment period after deducting
any capital increase reduction gift acceptance and profit distribution matters from the shareholders of the
target asset. After testing it was found that the target asset has not been impaired.In summary the provincial expressway should pay a cumulative performance commitment compensation
amount of 40092886.12 yuan.XIII. Stock payment
None
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
(1) Capital commitments
Items December 31 2023 December 31 2022
Contracted but not recognized in the financial
statements
Building long-term asset commitments - 7020477401.30
Expressway construction
2. Contingency
As of December 312023 the Company did not need to disclose important commitments.XV. Events after balance sheet date
1.Profit distribution
In RMB
Number of dividends to be distributed for every
5.47
10 shares (RMB)
Number of bonus shares to be distributed for
0
every 10 shares (shares)
Number of converted shares to be distributed for
0
every 10 shares (shares)
2382023 Annual Report
Number of dividends for every 10 shares declared
0
after deliberation and approval (RMB)
Number of bonus shares for every 10 shares
0
declared after deliberation and approval (shares)
Number of converted shares for every 10 shares
0
declared after deliberation and approval (shares)
Based on 2090806126 a cash dividend of RMB 5.47 (including tax) will
be distributed to all shareholders for every 10 shares and 0 bonus shares
Profit distribution scheme
(including tax) will be distributed instead of converting the reserve fund
into share capital.XVI. Other significant events
1. Correction of early-stage accounting errors
None
2. Segment information
（1） If the company has no reporting division or fails to disclose the total assets and liabilities of each
reporting division the reasons shall be explained
The company's business for the Guangfo Expressway the Fokai Expressway Guanghui Expressway and Jingzhu
Expressway Guangzhu Section toll collection and maintenance work the technology industry and provide
investment advice no other nature of the business no reportable segment.
3.Other important transactions and events have an impact on investors decision-making
In 2022 the Company received the Notice of Department of Transport of Guangdong Province on Relevant
Matters Concerning the Disposal of Guangzhou-Foshan Expressway at the Expiration of Toll Collection
(GJYBH [2022] No.24) and the Guangzhou-Foshan Expressway operated by its holding subsidiary Guangfo
Expressway Co. Ltd. stopped charging from 0: 00 on March 3 2022 retaining the existing toll collection
facilities to operate as usual at zero rate exempting all vehicles passing through this section from tolls and
collecting tolls from vehicles in other sections on behalf. After the toll is stopped Guangfo Company will
continue to be responsible for the management and maintenance of Guangzhou-Foshan Expressway.The source of funds for custody expenses paid by Guangfo Company needs to be further determined. As of
December 31 2023 custody expenses paid by Guangfo Company were RMB 221107620.02.XVII..Notes of main items in financial reports of parent company
1. Account receivable
1.Classification account receivables.
（1） Disclosure by aging
In RMB
Aging Balance in year-end Balance Year-beginning
Within 1 year（Including 1 year） 31718251.28 23817016.30
2392023 Annual Report
Total 31718251.28 23817016.30
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Category
Amount Proportio Amo Proportio value Amount Proportio Amo Proportio value
n(%) unt n(%) n(%) unt n(%)
Includi
ng：
Accrual of
bad debt
3171825317182523817012381701
provision 100.00% 100.00%
1.281.286.306.30
by
portfolio
Including
：
Aging 3171825 3171825 2381701 2381701
100.00%100.00%
portfolio 1.28 1.28 6.30 6.30
3171825317182523817012381701
Total 100.00% 100.00%
1.281.286.306.30
Accrual of bad debt provision by portfolio: The aging
In RMB
Balance in year-end
Aging
Account receivable Bad debt provision Expected credit loss rate (%
Within 1 year 31718251.28
Total 31718251.28
Note：The aging
Relevant information of the provision for bad debts will be disclosed with reference to the disclosure method of
other receivables if the provision for bad debts of bills receivable is accrued according to the general model of
expected credit loss:
□ Applicable √ Not applicable
（3） Accounts receivable withdraw reversed or collected during the reporting period
None
（4） The actual write-off accounts receivable
None
(5) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
In RMB
Proportion Amoun
Amount of of t of
Company Name Closing balance of Accounts receivable and total acco endingending balanc the contract assets contract assets ending balance unts balance
e receivable for bad
% debts
Guangdong Union Electronic 31242722.08 98.50%
2402023 Annual Report
Services Co. Ltd.Guangdong Expressway
Technology Investment Co. 475529.20 1.50%
Ltd.Total 31718251.28 100.00%
（6）Account receivable which terminate the recognition owning to the transfer of the financial assets
None
(7)The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts
receivable
None
2.Other accounts receivable
In RMB
Items Balance in year-end Balance Year-beginning
Dividend receivable 1205472.90 36905472.90
Other receivable 1020100372.97 1505117198.28
Total 1021305845.87 1542022671.18
(1)Interest receivable：None
（2）Dividend receivable
1)Dividend receivable
In RMB
Items Balance in year-end Balance Year-beginning
Guangdong Radio and Television Networks investment No.1
1205472.901205472.90
Limited partnership enterprise
Guangdong Guanghui Expressway Co. Ltd. 35700000.00
Total 1205472.90 36905472.90
2)Significant dividend receivable aged over 1 year
In RMB
Whether with
Balance in
Items Aging Reasons for non-recovery impairment and the
year-end
judgment basis
Guangdong Radio and Television The partnership agreement expires and
No it can be
Networks investment No.1 Limited Over 51205472.90 can be recovered after the extension
years recovered in the future
partnership enterprise procedures are completed
Total 1205472.90
（2） Other accounts receivable
1) Other accounts receivable classified
In RMB
Items Balance in year-end Balance Year-beginning
Securities trading settlement funds 30844110.43
Deposit 2277164.74 2090516.36
Petty cash 1232661.91 1293602.05
2412023 Annual Report
Compensation for performance
40092886.12
commitments receivable
Payment from related parties within the
975923541.671500593541.66
scope of the merger
Other 574118.53 1139538.21
Less：Bad debt provision 30844110.43
Total 1020100372.97 1505117198.28
2） Disclosure by aging
In RMB
Aging Balance in year-end Balance Year-beginningWithin 1 year(Including 1 year） 44648632.53 1502102861.29
1-2 years 975012062.00 28611.55
2-3 years 28611.55 2052691.71
Over 3 years 411066.89 31777144.16
3-4 years 7699.35 26560.70
4-5 years 23848.70 442981.15
Over 5 years 379518.84 31307602.31
Total 1020100372.97 1535961308.71
2422023 Annual Report
3） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book value Book value
Amount Proportion(% Amoun Proportion(% Amount Proportion(% Amount Proportion(%
) t ) ) )
Accrual of
bad debt 30844110.4
30844110.432.01%100.00%
provision by 3
single
Including：
Accrual of
bad debt 1020100372.9 1020100372.9 1505117198.2 1505117198.2
100.00%97.99%
provision by 7 7 8 8
portfolio
Including：
CSF Pottfolio 3509826.65 0.34% 3509826.65 3384118.41 0.22% 3384118.41
Very low
credit risk
financial 40667004.65 3.99% 40667004.65 1139538.21 0.07% 1139538.21
asset
portfolio
Risk-
1500593541.61500593541.6
free 975923541.67 95.67% 975923541.67 97.70%
66
combination
1020100372.91020100372.91535961308.730844110.41505117198.2
Total 100.00% 100.00% 2.01%
77138
2432023 Annual Report
Accrual of bad debt provision by single：0
Accrual of bad debt provision by portfolio:1
Accrual of bad debt provision by portfolio:
In RMB
Balance in year-end
Name
Book balance Bad debt provision Withdrawal proportion
Cast deposit portfolio 3509826.65
Very low credit risk financial
40667004.65
asset portfolio
Risk-free combination 975923541.67
Total 1020100372.97
Make provision for bad debts according to the general model of expected credit losses
In RMB
Stage 1 Stage 2 Stage 3
Bad Debt Reserves Expected credit losses Expected credit losses for the entireExpected credit loss over Total
over the next 12 duration (credit impairment
life (no credit impairment)
months occurred)
Balance as at
30844110.4330844110.43
January 12023
Balance as at
January 12023 in
current
This period write-
30844110.4330844110.43
off
Loss provision changes in current period change in book balance with significant amount
□Applicable √ Not applicable
4）Accounts receivable withdraw reversed or collected during the reporting period
None
5)Other receivables are classified according to the nature
In RMB
Items Amount
Securities settlement and trading funds 30844110.43
Where the write-off of other important receivables is as follows:
In RMB
Whether the
Write-off payment is
Write-off
Name Nature of other receivables Reasons for write-off procedure for generated byamount
performance related party
transactions
Bankruptcy Resolution adopted
Kunlun liquidation has been at the Fifteenth
Securities Securities trading settlement funds basically completed (provisional)30844110.43
and there is basically Meeting of the No
Co.Ltd no bankruptcy Tenth Board of
property available Directors
2442023 Annual Report
for distribution
Total 30844110.43
6） Top 5 of the closing balance of the prepayment collected according to the prepayment target
In RMB
Name Relations with the Company Amount Aging Reasons Proportion %
for non-
settlement
Reconstruction and expansion
Jingzhu Expressway of investment funds and 975000000.00 1-2 years
interest 95.67%Guangzhu Section Co.Ltd. Within 1
Interest 923541.67
year
Provisional estimate of
Guangdong Provincial Within 1
restructuring performance 40092886.12 3.93%
Freeway Co.Ltd. year
compensation number
Guangdong Litong Vehicle parking deposit 22980.00 2-3 years
Development Investment Within 1 0.18%
Co. Ltd. Lease deposit 1823397.94 year
First Pacific Davis Vehicle parking deposit 4200.00 2-3 years
Property Consultant Water and electricity costs Within 192116.80
working capital year 0.04%
(Guangzhou) Co. Ltd Within 1
Management fee deposit 322408.00
year
Within 1
Huang Honggui Petty cash 190000.00 0.02%
year
Total 1018471530.53 99.84%
7） Accounts receivable involved with government subsidies
None
8) Other account receivable which terminate the recognition owning to the transfer of the financial assets None
9) The amount of the assets and liabilities formed by the transfer and the continues involvement of other accounts
receivable
None
2452023 Annual Report
3. Long-term equity investment
In RMB
End of term Beginning of term
Items
Book Balance Impairment provision Book value Book Balance Impairment provision Book value
Investment in subsidiaries 3952330463.43 3952330463.43 3374330463.43 3374330463.43
Investment in joint
2990656046.312990656046.312722085180.532722085180.53
ventures and associates
Total 6942986509.74 6942986509.74 6096415643.96 6096415643.96
（1）Investment to the subsidiary
In RMB
Initial balance Increase /decrease in reporting period Closing balance of
Name Opening balance of the
Withdrawn
Add Decreased Closing balance impairment
impairment impairment Other
provision investment investment provisionprovision
Jingzhu Expressway Guangzhu Section
871171883.08525000000.001396171883.08
Co. Ltd.Guangfo Expressway Co. ltd. 154982475.25 154982475.25
Yuegao Capital Investment
322500000.0053000000.00375500000.00
(Guangzhou) Co. Ltd.Guanghui Expressway Co. Ltd. 2025676105.10 2025676105.10
Total 3374330463.43 578000000.00 3952330463.43
2462023 Annual Report
（2）Investment to joint ventures and associated enterprises
In RMB
Increase /decrease in reporting period
Initial Announced Closing
balance of Decrease Other ProvisionInvestment Other for balance of
Name Opening balance the Increase in in changes for Othe Closing balance
impairmen income under comprehensiv distributing impairmeninvestment investmen in impairmen r
t provision equity method e income cash dividend t provision
t equity t
or profit
I. Joint ventures
II. Associated enterprises
Zhaoqing
Yuezhao
310209765.8756894249.13367104015.00
Highway Co.Ltd.Guangdong
Jiangzhong 110250000.0 10685619.8
446883150.4011239149.07557686679.66
Expressway 0 1
Co. Ltd.Ganzhou
Gankang
163154438.0022400381.124500000.00181054819.12
Expressway
Co. Ltd.Ganzhou
Kangda 28500000.0
246268935.1340160769.85257929704.98
Expressway 0
Co. Ltd.ShenzhenHuiya
n Expressway 348669767.32 29252416.66 377922183.98
Co. Ltd.Guoyuan 2424.1 15522387.3 1027100533.4
987867627.4244637991.9910114877.17
Securities 9 0 7
2472023 Annual Report
Increase /decrease in reporting period
Initial Announced Closing
balance of Decrease Other ProvisionInvestment Other for balance of
Name Opening balance the Increase in in changes for Othe Closing balance
impairmen income under comprehensiv distributing impairmeninvestment investmen in impairmen r
t provision equity method e income cash dividend t provision
t equity t
or profit
Co.Ltd.Guangdong
Yueke Science
and Technology 219031496.39 10944601.74 8117988.03 221858110.10
Microfinance
Co. Ltd.Subtotal 2722085180.5 110250000.0 215529559.5 2424.1 67325995.1 2990656046.310114877.17
306941
Total 2722085180.5 110250000.0 215529559.5 2424.1 67325995.1 2990656046.310114877.17
306941
The recoverable amount is determined by the net amount of fair value minus disposal expenses
□Applicable□Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□Applicable□Not applicable
2482023 Annual Report
4. Business income and Business cost
In RMB
Items Amount of current period Amount of previous period
Revenue Cost Revenue Cost
Main business 1521448612.59 606338219.48 1296212805.59 584496313.76
Other 14136853.64 4642566.15 14566863.59 5138086.94
Total 1535585466.23 610980785.63 1310779669.18 589634400.70
5.Investment income
In RMB
Items
Amount of current period Amount of previous period
Long-term equity investment income accounted by
730452121.37966664177.01
cost method
Long-term equity investment income accounted by
215529559.56183837934.31
equity method
Investment income from disposal of Long-term equity
-45107982.42
investment
Dividend income from other equity instrument
71249739.3647286243.74
investments during the holding period
Interest income from debt investment during holding
18499161.74
period.Other 27008665.00 2087067.60
Total 1044240085.29 1173266601.98
XVIII. Supplementary Information
1.Current non-recurring gains/losses
√ Applicable □Not applicable
In RMB
Items Amount Notes
Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is
12740003.03
made)
Government subsidies recognized in current gain and loss(excluding those closely related to the
10685002.61
Company’s business and granted under the state’s policies)
Gain and loss from change of the fair value arising from transactional monetary assets transactional
financial liabilities as held as well as the investment income arising from disposal of the transactional
2456768.00
monetary assets transactional financial liabilities and financial assets available for sale excluding the
effective hedging transaction in connection with the Company’s normal business
Net amount of non-operating income and expense except the aforesaid items -4515527.98
Other non-recurring Gains/loss items 921152.92
The impairment provision for the advance expenses that have occurred but need to be defined from the -
source of funds（Note：2） 123358138.31
Less :Influenced amount of income tax 988084.33
Influenced amount of minor shareholders’ equity (after tax) -30770056.69
Total -71288767.37 --
Details of other profit and loss items that meet the non-recurring profit and loss definition
2492023 Annual Report
√Applicable□ Not applicable
Due to the special nature of the impairment provision for management and maintenance expenses advanced by
the Guangzhou-Foshan Expressway to be clarified it will affect the normal judgment of the Company's
operating performance and profitability by the user of the report.None
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses
and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information
Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been
defined as recurring gains and losses it is necessary to explain the reason.□ Applicable√ Not applicable
None of Non-recurring gain /loss items recorgnized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average ROE EPS（Yuan/share）
Profit as of reporting period
(%) EPS-basic EPS-diluted
Net profit attributable to common
17.30%0.780.78
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
18.06%0.820.82
deduction of non-recurring profit
and loss
3. Differences between accounting data under domestic and overseas accounting standards
（1）．Simultaneously pursuant to both Chinese accounting standards and international accounting standards
disclosed in the financial reports of differences in net income and net assets.□ Applicable□√ Not applicable（ 2） . Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards.□ Applicable□√ Not applicable
(3) .Explanation of the reasons for the differences in accounting data under domestic and foreign accounting sta
ndards. If the data that has been audited by an overseas audit institution is adjusted for differences the name of t
he overseas institution should be indicated
250
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